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Sri Lanka’s creditor nations meet

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Sri Lanka’s creditor nations meet

 Sri Lanka’s creditor nations held their first meeting yesterday (Tuesday) online to co-ordinate restructuring the island nation’s debt.

The meeting, within a new framework, was launched in Washington D.C. in April 2023. The creditors hope it will serve as a model to resolve the debt difficulties of middle-income economies,

Japan, which initiated the launch together with India and France, has invited all bilateral creditors, including the largest, China. The reason was not immediately clear, although one of the officials felt Beijing could be weighing the merit of participation. Last month France, India and Japan unveiled a common platform for talks among bilateral creditors to co-ordinate restructuring of Sri Lanka’s debt.

Sri Lanka owes US$7.1 billion to bilateral creditors, government data show, with $3 billion owed to China, followed by $2.4 billion to the Paris Club and $1.6 billion to India. The government also needs to renegotiate more than $12 billion of debt in euro bonds with overseas private creditors, and US$2.7 billion on other commercial loans.

Sri Lanka has kicked off talks to rework part of its domestic debt and aims to finalise the deal by May.



Wednesday, May 10, 2023 – 01:00

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