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“Sri Lankan Authorities Pursue Debt Restructuring Negotiations to Address Financial Challenges”

In a bid to address its financial challenges, Sri Lankan authorities will continue to engage in debt restructuring negotiations, demonstrating their commitment to equitable treatment among creditors and transparency within the norms of such negotiations.

According to a recent media release issued by the State Minister of Finance, Shehan Semasinghe, discussions with the Ad Hoc Group of Bondholders, representing holders controlling more than 50% of the bonds, have been progressing positively.

While confidentiality agreements limit the disclosure of specific details, the statement assures stakeholders of the highest possible level of transparency within internationally accepted practices.

The cleansing statement, issued on April 16, marks the conclusion of the first round of confidential discussions with bondholders’ representatives. It highlights constructive dialogue and significant progress made on restructuring proposals, with both sides successfully addressing technical issues.

However, key concerns articulated by Sri Lanka remain to be satisfactorily addressed.

The next steps involve further consultations with IMF staff to assess the compatibility of the latest proposals with program parameters.

Subsequently, discussions with bondholders will continue in hopes of reaching common ground before the IMF board considers the second review of Sri Lanka’s EFF program.

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