Sri Lanka seeks US$17 billion debt reduction by restructuring – President urges lawmakers to accept IMF proposal
- Parliament is having a 3-day debate on President Ranil Wickremesinghe’s proposal to accept the IMF programme
- If approved, the plan would dictate how Sri Lanka’s crisis-stricken economy will be managed in the coming years
Sri Lanka’s president urged lawmakers on Wednesday to approve a four-year International Monetary Fund programme to restructure the country’s US$17 billion in foreign debt.
Parliament began a three-day debate on Wednesday about President Ranil Wickremesinghe’s proposal to accept the IMF programme. It will be followed by a vote.
If approved, the plan would dictate how Sri Lanka’s crisis-stricken economy will be managed in the coming few years.
A majority of lawmakers are expected to accept the IMF’s four-year bailout programme. Under the plan, the international development lender will provide nearly US$3 billion in stages.
Sri Lanka announced last year that it was suspending repayment of its foreign loans because of a severe foreign currency crisis resulting from the impact of the Covid-19 pandemic and efforts by the central bank to stabilise the Sri Lankan rupee by using scarce foreign reserves.
Wickremesinghe said at the time he took over as president last July, the country’s total debt, including both domestic borrowing and foreign was US$83.6 billion.
