Sri Lanka has successfully concluded the consultation process with its Official Creditor Committee (OCC) and the International Monetary Fund (IMF), the Finance Ministry announced on Friday (October 4) night.
The Democratic Socialist Republic of Sri Lanka confirmed that, following the Agreement in Principle (AIP) reached with both international and local holders of International Sovereign Bonds (ISBs) on September 19, 2024, authorities have completed discussions with the OCC and IMF to ensure that the AIP terms comply with the Comparability of Treatment (CoT) principle and the conditions of the IMF-supported program.
The Finance Ministry also stated that formal confirmation has been received from the OCC, indicating that the AIP terms are aligned with the CoT principle. Similarly, IMF staff have confirmed that the AIP terms meet the parameters of Sri Lanka’s Extended Fund Facility (EFF) program’s second review macro framework, in conjunction with the restructuring of official claims agreed upon with the OCC and China Exim Bank in June 2024.
Following the Presidential elections held on September 21 and the formation of the new government on September 25, Sri Lankan authorities reaffirmed their commitment to the Program’s debt targets and the AIP terms announced on September 19. They also expressed their intention to expedite the ISBs’ restructuring process according to these terms.
Sri Lanka extended its gratitude to all creditors, the IMF, and the OCC for their continued support and good-faith engagement throughout the process.
