Govt. to announce parameters of foreign and domestic debt operations this month
State fiscal and monetary authorities, assisted by their leading financial and legal advisory firms Lazard and Clifford Chance LLP, will continue to engage with Finance Ministry and Central Bank staff on their scenario analysis.
The Government is expected to make an announcement on the coverage and parameters of the external and domestic debt operations before end-April 2023.
This was announced by Central Bank Governor Nandalal Weerasinghe at a media conference in Colombo this week stating that data and information sharing will continue.
He noted that the reconciliation of debt sustainability and relief analysis with creditors, will be followed by eventual agreements with official creditors and debt exchanges with private creditors.
The authorities’ proposed restructuring perimeter excludes debt owed to international financial institutions (IFIs), Central Bank currency swaps, emergency credit lines extended in 2022, and any new disbursements made after the moratorium announcement, the IMF country report revealed.
The remaining foreign currency debt to official bilateral and commercial creditors is expected to be restructured through extension of grace period and maturity, interest rate reduction, nominal haircut, or a combination of these, it added.
The authorities plan to restructure their foreign currency debt held in Sri Lanka Development Bonds (largely held by banks) and FX bank loans of the government and SOEs—with an aim of achieving substantial flow relief, the report divulged.
In a startling revelation, the IMF highlighted that the total outstanding debt of the government was a massive amount of Rs.3.03 trillion by end November 2022 whereas the official figure indicated the debt burden as Rs 2.55 trillion.
The total debt of Rs 2.55 trillion was published in the Central Bank’s weekly economic indicator report dated March 24, 2023.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!