G24 Urges Timely Debt Relief for Sri Lanka

COLOMBO (News 1st); The G24 says that Sri Lanka has made significant progress over the past two years, however, is urging timely debt reduction measures for the island nation.

Dr. Iyabo Masha, Director of the G24 speaking to reporters at the IMF and World Bank Group Annual Meetings in Washington DC called for the establishment of frameworks that allow middle-income countries to negotiate with their creditors, similar to the existing common framework for low-income countries. 

Addressing a question from Zulfick Farzan of News 1st Sri Lanka regarding the G24's position on supporting countries like Sri Lanka, which is currently striving to emerge from an economic crisis, Dr. Masha highlighted that according to the latest IMF Article IV assessment, the country is showing signs of recovery with increasing growth, improved fiscal buffers, and rising import duties.

Regarding the G24's stance, Dr. Masha emphasized the critical issue of debt sustainability for Sri Lanka.

She called for the establishment of frameworks that allow middle-income countries to negotiate with their creditors, similar to the existing common framework for low-income countries. 

She mentioned the Sovereign Debt Resolution Roundtable as a potential forum for middle-income countries, although it currently does not provide direct debt relief but fosters mutual understanding.

Dr. Masha stressed the need for timely and comprehensive debt reduction measures for both middle and low-income countries. 

She expressed optimism that if discussions in this area progress swiftly, countries like Sri Lanka, Lebanon, and others could benefit significantly from these initiatives.