US welcome India’s assurance of support to Sri Lanka’s debt restructuring plans

ECONOMYNEXT – The United States welcomes India’s decision to support Sri Lanka’s debt restructuring plans and stands ready to assist the island nation unlock the International Monetary Fund’s extended fund facility (EFF) once all creditors come on board, US Ambassador Julie Chung said.

The diplomat tweeted Thursday January 19 that the US was pleased to see India confirm its strong support to Sri Lanka’s prospective EFF programme and commit to providing financing/debt relief transparently and in coordination with the Paris Club.

“The US stands ready to assist SL to unlock IMF assistance when all creditors agree to fair and equitable treatment,” she said.

Ahead of a two-day official visit by India’s external affairs minister S Jaishankar, the Indian government informed the IMF that it strongly supports Sri Lanka’s debt restructuring efforts in the latter’s bid to secure a 2.9 billion dollar bailout package over a four-year period.

“We hereby confirm our strong support for Sri Lanka’s prospective EFF-supported programme and commit to supporting Sri Lanka with financing/debt relief consistent with restoring Sri Lanka’s public debt sustainability under the IMF-supported programme and ensuring that the programme is fully financed as projected by IMF staff,” a letter dated January 16 and addressed to IMF chief Kristalina Georgieva by Indian finance ministry official Rajat Kumar Mishra said.The financing and debt relief will be provided by the Export-Import Bank of India, said Mishra in his letter.