Sri Lanka requests debt treatment in first bilateral committee meeting, says Paris Club

COLOMBO (News 1st) - Seventeen countries have come together to form an official creditor committee to discuss Sri Lanka's request for a debt treatment, the Paris Club said in a statement. The first meeting of the committee was held on May 9th, 2023, and was co-chaired by India, Japan, and France. The committee includes Paris Club creditors and other official bilateral creditors.

During the meeting, Sri Lankan authorities formally presented their request for debt treatment and reiterated their commitment to transparency and comparability of treatment towards their official bilateral creditors. The IMF and World Bank representatives presented the latest macroeconomic developments regarding Sri Lanka and their relationship with the country.

The creditor committee welcomed the passage of the resolution for implementation of the IMF-supported program by the Sri Lankan Parliament on April 28, 2023. The committee will now pursue its work to find an appropriate solution to Sri Lanka's external debt vulnerabilities, consistent with the parameters of the IMF program.

Private creditors and other official bilateral creditors are being urged to provide debt treatment on terms that are at least as favorable as the ones agreed by the creditor committee, in line with the comparability of treatment principle. The committee also reiterates its invitation to other bilateral official creditors to formally join the creditor committee.

The members of the creditor committee are representatives of countries with eligible claims on Sri Lanka. Paris Club members with no eligible claims, as well as China, Saudi Arabia, and Iran, attended the meeting as observers. Representatives of the International Monetary Fund and the World Bank Group were also present.