ECONOMYNEXT – Sri Lanka’s Ceylon Chamber of Commerce said International Monetary Fund and official creditor committee clearance for an in-principle deal with private bondholders, will pave the way for fiscal stability.
Sri Lanka Friday said the IMF and OCC had given their ok for the latest tweaks to a deal with bondholders to re-structure debt.
Sri Lanka plans to issue GDP linked upside/downside bonds and some plain vanilla bonds linked to governance indicators which are yet to be decided.
“The Chamber looks forward to the completion of the restructuring of Sri Lanka’s external debt,” the trade association said.
“The completion of the OCC and IMF consultation process is a positive indicator for ensuring successful future reviews and disbursements under the IMF’s Extended Fund Facility (EFF) arrangement, which will be essential in the country’s journey towards fiscal stability and economic transformation.
“The steadfast commitment to aligning with the Comparability of Treatment (CoT) principle has been crucial in advancing Sri Lanka’s broader economic reform agenda.
“We are appreciative of the quick response of the OCC countries and IMF in this regard.”
The full statement is reproduced below:
Successful IMF and OCC Agreement Paves Way for Debt Relief: Ceylon Chamber Welcomes Progress
The Ceylon Chamber of Commerce commends the Government of Sri Lanka on the successful completion of consultations with the Official Creditor Committee (OCC) and the International Monetary Fund (IMF) regarding the Agreement in Principle (AIP) reached with international and local holders of International Sovereign Bonds (ISBs).
This marks significant progress towards achieving external debt restructuring and is aligned with the first priority out of the ten key areas the Chamber highlighted in its recommendations to the new administration (https://www.chamber.lk/ceylon-chamber-congratulates-new-president/).
We acknowledge the contributions of the Government, Governor of the Central Bank, the Secretary to the Treasury, and all relevant stakeholders who played an essential role in this achievement.
The steadfast commitment to aligning with the Comparability of Treatment (CoT) principle has been crucial in advancing Sri Lanka’s broader economic reform agenda. We are appreciative of the quick response of the OCC countries and IMF in this regard.
The Chamber looks forward to the completion of the restructuring of Sri Lanka’s external debt. The completion of the OCC and IMF consultation process is a positive indicator for ensuring successful future reviews and disbursements under the IMF’s Extended Fund Facility (EFF) arrangement, which will be essential in the country’s journey towards fiscal stability and economic transformation.