IMF will not get involved in Sri Lanka's debt relief negotiations

COLOMBO (News 1st); The International Monetary Fund said that it would not get involved in Sri Lanka's debt relief negotiations.

Krishna Srinivasan, the Director of the Asia and Pacific Department (IMF) said Sri Lanka's debt relief is expected to contribute about $ 17 billion to close the BOP financing gap in 2023 to 2027, which is the overall gap is about 24 billion. 

However, he said the decision on how the restructuring happens in terms of providing debt relief varies and it has been negotiated between Sri Lanka and its creditors. 

"Now, it could take the form of principle haircuts, extension of maturity and interest rate reduction. So, what form it takes has been negotiated between Sri Lanka and its creditors, and we don't get involved in that," he added. 

He said that Sri Lanka is expected to outline a strategy or a blueprint, engage with creditors later this month, and that will provide a basis for engaging with the creditors on the restructuring.

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