In a recent announcement, Dr. Nandalal Weerasinghe, the Governor of the Central Bank of Sri Lanka (CBSL), provided an optimistic overview of the nation’s ongoing efforts in debt restructuring.
Highlighting substantial advancements, the Governor emphasized the successful completion of the Domestic Debt Optimization (DDO) operation. This initiative aimed at extending the maturity of domestic debt, effectively alleviating immediate financial pressures on the government.
Moreover, Dr. Weerasinghe revealed a significant achievement with Sri Lanka securing an Agreement in Principle (AIP) with both the Official Creditors Committee (OCC) and the Export-Import Bank of China (EXIM Bank) for debt restructuring. This milestone signifies a crucial step towards obtaining long-term debt relief from key creditors.
Acknowledging the importance of ongoing negotiations, the Governor expressed confidence in reaching similar agreements with other creditors in the near future. He stated, “Good faith negotiations are continuing with other creditors to reach an AIP at the earliest,” underlining the commitment to advancing discussions for comprehensive debt restructuring.
