The Secretary to the Ministry of Finance states that Sri Lanka will suspend normal debt servicing of all affected debts for an interim period pending an orderly and consensual restructuring of those obligations in a manner consistent with an economic adjustment program supported by the IMF.
Moreover, the Finance Ministry states that the Government is taking emergency measures to prevent further deterioration of the Republic’s financial position and to ensure fair and equitable treatment of all creditors in comprehensive debt restructuring.
The Ministry further said the orderly and consensual restructuring will take place in a manner consistent with an economic adjustment program supported by the International Monetary Fund (IMF).
The policy of the Government in this regard applies to amounts of affected debts outstanding on 12th April 2022. However, new credit facilities after that date are not subject to this policy and shall be serviced normally, the Ministry added.
(Via News1st & Other Agencies)