IMF Managing Director Kristalina Georgieva says the ongoing assistance from global banks and other official financial institutions, together with the participation of bondholders in a financial obligation exchange consistent with debt sustainability, is necessary to underpin the success of Sri Lankas financial reform efforts.She mentioned that the agreements reached by the Sri Lankan authorities with both the Steering Committee of the Advertisement Hoc Group of external shareholders, and the Local Consortium of Sri Lanka, mark a substantial step forward which the terms of these arrangements have been examined by the IMF personnel as being in line with the parameters of the IMF-supported program.Anchored by policies under the IMF-supported program, the successful implementation of these agreements will supply significant external financial obligation service relief and additional add to Sri Lankas efforts to bring back debt sustainability, the IMF chief said.To take advantage of this momentum, rapid conclusion of the financial obligation operation with high creditor participation would be essential for the success of the program.In parallel, the authorities continue to settle other remaining debt restructuring arrangements, she said, including that this collective effort is essential to supporting the success of Sri Lankas financial obligation restructuring efforts.Georgieva stated that the Sri Lankan authorities have actually declared their determination to persevere with their reform program and put the economy on a course of continual and high growth.The continued support from international financial institutions and other main financial institutions, together with the involvement of shareholders in a financial obligation exchange constant with financial obligation sustainability, is essential to underpin the success of these reform efforts.She repeated that the IMF stays an unfaltering partner in supporting Sri Lanka and its people and stands ready to help the country attain its economic and social reform goals.Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), released the following statement about Sri Lanka to Members of the Financial Community today: The Sri Lankan authorities have actually been executing an ambitious financial reform program supported by the IMF, which intends to restore financial obligation sustainability and external practicality, underpin broad macroeconomic reforms, and reinforce economic governance and openness.
Sri Lankas financial reform program is supported by an SDR 2.286 billion (about US$ 3 billion), 48-month Extended Fund Facility plan, authorized by the IMFs Executive Board on March 20, 2023.
The program has left to a good start with the economy recuperating, inflation staying low, and reserves being collected.
Following the conclusion of two reviews, IMF staff reached staff level agreement with the authorities on November 23 for the third review under the plan.
In June 2024, Sri Lanka settled on a memorandum of understanding with the Official Creditors Committee (OCC) and reached last agreement with China EXIM Bank that would deliver a debt treatment by those financial institutions targeted at bring back financial obligation sustainability consistent with IMF program parameters.Building on this progress, and following several months of constructive conversations, the agreements reached by the Sri Lankan authorities with both the Steering Committee of the Ad Hoc Group of external bondholders, and the Local Consortium of Sri Lanka, mark a substantial step forward.
The regards to these agreements have actually been evaluated by the Fund staff as remaining in line with the parameters of the IMF-supported program.
Anchored by policies under the IMF-supported program, the effective implementation of these arrangements will offer substantial external financial obligation service relief and further contribute to Sri Lankas efforts to bring back financial obligation sustainability.To profit from this momentum, quick conclusion of the debt operation with high creditor participation would be crucial for the success of the program.
In parallel, the authorities continue to finalize other staying debt restructuring arrangements.
This cumulative effort is key to supporting the success of Sri Lankas debt restructuring efforts.The Sri Lankan authorities have declared their determination to persevere with their reform agenda and put the economy on a path of continual and high growth.
The ongoing assistance from international financial institutions and other main creditors, together with the involvement of shareholders in a debt exchange consistent with debt sustainability, is necessary to underpin the success of these reform efforts.The IMF stays an unfaltering partner in supporting Sri Lanka and its individuals and stands all set to help the country accomplish its economic and social reform goals.