IMF team begins talks with SL PM in parallel to debt advisory consultations

Representatives from Sri Lanka’s financial and legal advisers, Lazard and Clifford Chance LLP now in Colombo have started their preliminary observations of the island nation’s debt restructuring amidst the country’s worst economic crisis, Finance Ministry sources said.  

Talks with creditors and bond holders are due to take place in the coming weeks, a senior Ministry official said adding that it is a time consuming affair as it will take at least a year to successfully complete Sri Lanka’s external debt restructuring process

Debt restructuring talks, will be a precursor for IMF staff-level agreement and expedite IMF board of Directors’ approval for a lending arrangement and financial disbursements, he added.

In the backdrop of the international financial and legal advisers’ preliminary observation process, a 10-member IMF team began their discussions with Prime Minister and Finance Minister Ranil Wickremesinghe in Colombo this morning (Monday).

The Economic Stabilisation Committee head former Treasury Secretary Dr. R.H.S. Samaratunga, Central Bank Governor Dr. Nandalal Weerasinghe and Treasury Secretary Mahinda Siriwardena attended the discussions.

Meanwhile Police dispersed a group of protesters when they gathered near the Finance Ministry building and tried to stage a protest demonstrations against the discussions with the IMF, several eye witnesses said.

The IMF team is on a visit to the island for talks on a bailout economic programme as Sri Lanka is facing its worst financial crisis. (Bandula)