COLOMBO, Mar 06 (AFP): Sri Lankan President Ranil Wickremesinghe said Wednesday he was seeking a moratorium on foreign debt repayments until 2028, following a government default during the island nation's unprecedented economic crisis two years ago.
A collapse in foreign exchange reserves saw months of food and fuel shortages along with street protests that forced the ouster of President Ranil Wickremesinghe's predecessor in 2022.
Sri Lanka has since signed up to an International Monetary Fund rescue package and is working to repair public finances since the government default in April of that year.
Wickremesinghe said talks were still ongoing with both bilateral and private creditors to restructure its billions of dollars in loans and bonds.
"We intend to secure temporary relief of not having to service our debts till the end of December 2027," Wickremesinghe told lawmakers in parliament.
Sri Lanka's foreign debt stood at $52.65 billion at the end of September 2023, according to central bank figures. To maintain the IMF bailout programme, Sri Lanka must clinch a firm deal with foreign creditors, both bilateral and private bondholders, before the IMF's next review of the economy by June this year.
Bankrupt Sri Lanka to seek debt moratorium until 2028
FE Team | Published: March 07, 2024 00:01:15
Bankrupt Sri Lanka to seek debt moratorium until 2028
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