Sri Lanka Crisis | Creditor Nations Agree on Debt Restructuring of the Island Nation | Oneindia News
Sri Lanka anticipates significant relief from its economic turmoil. Reports indicate a pending debt-restructuring agreement with creditor nations, pivotal amid the country's $36.6 billion external debt. Pending IMF approval may secure up to $900 million in funding, but bondholder negotiations remain crucial.
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~HT.99~ED.103~
#SriLanka #Srilankacrisis #Foodcrisis #Economicrisis #Srilankaeconomy #India #China #Worldnews #Oneindia #Oneindianews
~HT.99~ED.103~
Transcript
00:00 After years of economic uncertainty, it appears that Sri Lanka is finally set to have a big
00:07 relief. A government source has disclosed to the media that Sri Lanka has received a
00:11 letter of a debt restructuring agreement with creditor nations. Despite this, the official
00:15 creditor committee has yet to dispatch a confirmation letter.
00:19 Facing its worst financial crisis in decades, Sri Lanka grappled with a restructuring negotiation
00:23 since last year, compelled to default on foreign debt in May 2022 as foreign reserves hit record
00:28 lows. The anonymous source stated, "Sri Lanka has been informed of an agreement, emphasising
00:33 it is confirmed that an agreement has been reached with bilateral lenders, but we are
00:37 still waiting on an official letter. We expect it soon." Despite attempts to seek comments,
00:42 the Sri Lanka's President's Office and Finance Ministry did not immediately respond.
00:46 Reportedly, Japan, in collaboration with France and India, co-chairs the official creditors
00:50 committee. It is highly likely that these three nations will also oversee debt restructuring,
00:54 while China, as Sri Lanka's primary bilateral creditor, will participate as an observer.
00:59 China refrained from formal membership within the group.
01:02 About a month after securing a deal with the Export-Import Bank of China (EXIM) to settle
01:06 approximately $4.2 million in debt, Sri Lanka has reached an agreement with creditor nations.
01:17 The EXIM arrangement was pivotal for Sri Lanka to pass the initial review of an international
01:22 monetary fund bailout, paving the way for a second IMF funding instalment of approximately
01:26 $334 million, according to the finance ministry. Following IMF's endorsement, Sri Lanka may
01:33 finally receive additional funds from the Asian Development Bank and the World Bank,
01:36 potentially holding around $900 million, as slated by the Central Bank Governor P Nandilal
01:42 V Singhe last week. Sri Lanka's finance ministry recently released data on estimating the country's
01:47 total external debt to be a staggering $36.6 billion, of which 10.94 is bilateral debt.
01:53 A deal must be reached with the bondholders, who own the majority of Ireland's $12.5 billion
01:58 in foreign sovereign bonds.
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02:01 (music fades)
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