IMF Executive Board agreement could be further delayed - President

COLOMBO (News 1st) - President Ranil Wickremesinghe says that if the process to restructure debts with India and China is delayed, the process to reach an agreement with the IMF Executive Board could be further delayed till January. 

Speaking at the 32nd Annual General meeting of the Sri Lanka Tea Factory owners, the President said that Sri Lanka must first ensure that it can get out of bankruptancy, and negotiate with creditors.

"I went to the Paris Club first. Western countries and Japan are there. But we are in a special place. Only one of our three main creditors is a member of the Paris Club. The other two are outside it; India and China," the President explained.

He further pointed out that among the bankrupt countries, China only initiated debt restructuring with Zambia.

President Wickremesinghe said that India initiated its debt restructuring talks first with Sri Lanka. He said that he has already initiated talks with Japan, and thereafter with India and China.

"If we are to come to a common opinion to solve this issue, we need to discuss bilateral issues that affect both countries. We need to continue following this process now. If that happens, we can reach an agreement by December," he said. 

Accordingly, President Wickremesinghe said that this means Sri Lanka should come to an agreement by mid-November and go to the IMF Board of Directors by mid-December.

"If that happens, it will be a good opportunity for us, but I don't know if we will be able to do it this way. The simplest reason is that China will focus on this after their Communist Party Congress. If that happens, we will aim to reach an agreement by January. That is our goal. That means we have to show that we have the income we need now," the President added.

President Wickremesinghe added that, afterwards, the country can proceed along, and can confirm how to carry on with the economy in a more successful manner in the next year.