President Ranil Wickremesinghe said the finalisation of debt restructuring could be completed by the first half of this year. It was earlier anticipated to be completed within the first quarter.
President Wickremesinghe in his policy speech on February 6 said that he signalled a positive shift in the cash-strapped economy with a surplus by the end 2023, first since 1977.
Delivering the ‘Statement of Government Policy’ on the first day of the Fifth Session of the Ninth Parliament, the President said the finalisation of debt restructuring could be completed by the first half of the year, which was earlier anticipated to be completed within the first quarter.
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“The domestic debt restructuring plan has been successfully executed as the first step, and a policy agreement for restructuring has been reached with foreign creditors as the second step. Negotiations with private creditors are presently in progress, President Wickremesinghe, who is also the Finance Minister said.
“By September 2023 our total debt burden was $91 billion. It will take a considerable period of time to settle this debt. To meet our debt, we need to source the funds locally. It is imperative that we generate this income; otherwise, we risk falling into the debt trap again,” he said.
He said even under the current negotiations for restructuring, Sri Lanka still has to pay around $3 billion per year. – The Hindu