Sri lanka News – Sri Lanka’s debt advisors are looking at local debt as it is building a re-structuring plan to negotiate with creditors as part of efforts to make the debt sustainable, President Ranil Wickremesinghe said.
He said agreement has to be reached with official creditors to go to the London Club (of private creditors).
In addition to foreign debt, the local debt was also to be considered.
“Certainly it will have far reaching consequences,” President Wickremesinghe told an economic forum organized by Advocata Institute, a Colombo-based think tank.
“Lazard (debt advisors) is looking at both.”
Central Bank Governor Nandalal Weerasinghe has said that the government’s position on debt restructuring is as declared in April 2022.
Local debt has already been hit by a real hair cut with the steep currency depreciation and inflation.
Most local debt is sold at low rates to the Employment Provident Fund of private sector workers (Colombo/Aug05/2022)