Domestic Debt Restructuring will go ahead; If stock market collapses it will be closed - President

COLOMBO (News 1st); Sri Lankan President Ranil Wickremesinghe told Parliament on Wednesday (26) that Domestic Debt Restructuring will not be suspended, even if banking services and the stock market collapse.

He was speaking during the debate in Parliament over the EFF facility offered by the IMF.

"Sri Lanka's total debt is USD 83.6 Billion. Foreign debt amounts to USD 41.5 Billion. Domestic debt amounts to USD 42 Billion. We need to restructure the debt,"  said President Wickremesinghe, adding that Sri Lanka will be launching negotiations with foreign creditors. 

President Ranil Wickremesinghe said that foreign creditors have informed Sri Lanka to discuss domestic debt restructuring as well, however, no final decision has been reached with them.

"Some banks say they cannot face this situation. Then all I have to say is, take over this responsibility and carry forward the economy. People cannot place the gun to head and say certain measures will lead to a collapse. The stock market says that it will collapse. If that happens, I will close it down. They cannot come and speak about conditions now," the President told Parliament.

He said parliament will decide, and then the house can tell the banks and stock market on what needs to be done. 

He assured that the Employees Provident Fund will not be impacted by the domestic debt restructuring process.

"We have no alternative except for the IMF. No one has proposed for any such program. In the absence of a working alternative, our option is to approve this (IMF program)," said the President.

He also said that the issues highlighted by various quarters in society can be taken up for discussion during the six-month review with the IMF staff.