In an exclusive interview with News 1st during the IMF and World Bank Annual Meetings in Marrakech, Morocco, Dr. Iyabo Masha, the Director of the G24 Secretariat, provided insight into the ongoing debt issues faced by Sri Lanka and several other member countries. Dr. Masha affirmed that Sri Lanka is not alone in grappling with its debt crisis, as many G24 member nations find themselves in similar circumstances. Consequently, the G24 is closely monitoring the developments in Sri Lanka.
Despite Sri Lanka having reached agreements concerning a portion of its debt earlier this year, Dr. Masha emphasized that challenges remain, particularly in addressing debt covered by the Global Sovereign Debt Roundtable. Progress in this area has been slower in comparison to implementing common framework policies aimed at reducing the debt burden.
Notably, one of Sri Lanka’s principal creditors, China, is a participant in the Global Sovereign Debt Roundtable. Dr. Masha expressed optimism that the collaboration of major creditors within the roundtable would accelerate progress by the year’s end.
Furthermore, Dr. Masha shed light on the broader issue faced by middle-income countries, stating, “Sri Lanka is not alone on this issue. Middle-income countries, in general, seem to be confronting a unique set of challenges when it comes to debt resolution.” She revealed that the G24 has been urging the IMF and the World Bank to develop a more tailored framework that better caters to the specific challenges and requirements of middle-income nations.
The G24’s commitment to supporting Sri Lanka and other member countries in their debt-related challenges underscores the organization’s dedication to finding comprehensive solutions for this global issue.
