President reveals talks with Country’s private creditors on outstanding debt

By Saman Indrajith

President Ranil Wickremesinghe told Parliament yesterday that negotiations were underway with Sri Lanka’s private creditors on debt restructuring with a case filed by one international sovereign bond (ISB) holder now in the process of being resolved.Responding to a query from MP Wimal Weerawansa, President Wickremesinghe said local private creditors had accepted the terms of the country’s ongoing talks with its multilateral and bilateral debt holders.

“There is one court case, which is now at a stage of being resolved. Once the bilateral debt has been discussed, we don’t think there will be a major issue with private credit,” the President said.

“The talks have now begun,” he added.

MP Weerawansa also demanded to know what would happen to Sri Lanka’s deal with the International Monetary Fund (IMF) for a USD 2.9 billion dollar extended fund facility EFF) if one of the bilateral lenders did not agree to debt restructuring.President Wickremesinghe: “We have discussed what happens if one country opposes or doesn’t agree. There are only two options: cut off debt, or extend the payback period by 10 to 20 years. One of those two options has to be discussed, and we can then arrange for one of them.”

Chief Opposition Whip Kandy District SJB MP Lakshman Kiriella asked the President if the IMF agreement would be tabled in parliament before the budget speech for 2023.

“The IMF says don’t release it till we finish this round of negotiations,” President Wickremesinghe said.

“Don’t worry. I won’t put anyone into trouble,” he added, smilingly.The President said the agreement had been signed, but the Paris Club member states and India and China had to agree.

“If there is a change, we’ll come back and tell you. But so far we don’t know what China and India have to say,” he said.