Sri Lanka’s Central Bank Governor Urges Steady Course for Economic Recovery

COLOMBO (News 1st); Sri Lanka's Central Bank Governor Dr. Nandalal Weerasinghe stressed that it is important for the country to proceed in the existing direction to achieve economic recovery.

Dr. Weerasinghe underscored the need to complete the external debt restructuring process.

The Debt Department Operations (DDO) component has already been successfully addressed. However, there remain outstanding matters with the Ceylon Petroleum Corporation (CPC), he added.

Agreements in principle have been reached with bilateral creditors, and negotiations are ongoing for finalizing the agreements and signing Memoranda of Understanding (MoUs) with the Official Creditors Committee (OCC) and China.

Addressing commercial creditors, Dr. Weerasinghe mentioned two critical areas. First, progress is being made with the China Development Bank (CDB). Second, discussions with the International Sovereign Bond (ISB) group have been constructive. The initial round of engagement was transparent, and further dialogue is planned to ensure successful outcomes.

The Central Bank Governor noted that the completion of the International Monetary Fund (IMF) review is a significant milestone.

Dr. Weerasinghe noted that it is important to gain confidence and endorsement for Sri Lanka's policy direction.

He said that by adhering to commitments made under the IMF program, Sri Lanka aims to demonstrate its commitment to prudent economic policies.

Dr. Weerasinghe expressed optimism that successful debt restructuring efforts would strengthen bilateral partnerships with official creditors.