Sri Lanka

Sri Lanka is urging China to share with other creditors the terms of its recent $4.2 billion bilateral debt deal, a step needed to help the bankrupt nation speed up the process of restoring its finances more than a year after it defaulted. Sharing the information would ensure transparency and assure other bilateral creditors that they’re getting a comparable deal, Nandalal Weerasinghe, the country’s central bank governor, said on a panel Friday. The request from Sri Lanka comes as it seeks to finalize a deal with its official creditor committee, co-led by Japan, India and the Paris Club, an informal and influential group of Western lenders.

The South Asia nation defaulted in May 2022 and owes more than $12 billion in overseas bonds, according to the government’s quarterly debt bulletin. Sri Lanka’s debt restructuring is among a few test cases of the IMF-led efforts to develop new guidelines among rich and poor countries to manage defaults.

That’s mainly driven by China’s limited experience restructuring distressed loans after its rise over the past decade to become the biggest bilateral lender to emerging markets, as well as a bigger role played by private creditors.Sri Lanka is asking China to share the deal terms “with all other creditors” as soon as possible to “make it more transparent and ensure comparability so that we can make progress,” Weerasinghe said.

“Because this is a bilateral agreement, obviously, we need to have a consensus from the other party to share that information.” Private creditors are seeking a separate deal.

An ad hoc group of bondholders, organized by advisers including Rothschild - Co., recently submitted a proposal to Sri Lanka that includes taking a 20% haircut and issuance of new debt, including a so-called macro-linked bond.Incorporating China, along with other rising bilateral creditors such as India and Saudi Arabia, into the established order of the Paris Club has been a lengthy process and a main focus of the International Monetary Fund’s annual meetings this week in Morocco. Beijing made an unexpected announcement earlier this week of a deal between Sri Lanka and the Export-Import Bank of China, which has increased confusion over the process.

The IMF and other creditors also weren’t aware of the development, and Weeransinghe on Friday said that the announcement was “a bit of a surprise” to the Sri Lanka government as well. The issue will likely be in focus next week when Sri Lanka’s President Ranil Wickremesinghe travels to China to participate in the Belt and Road Forum in Beijing.

About 40% of its bilateral debt is owed to China and 16% to India, according to estimates from the IMF. Separately, the IMF is assessing Sri Lanka’s progress toward meeting economic and reform targets under the nation’s $3 billion bailout package.

A staff-level agreement is the first step needed in order for a second tranche of $334 million in loans.Sri Lanka and the IMF are close to reaching such a staff-level agreement following talks in Morocco this week, according to people involved in the discussions, who asked not to be identified because the matter isn’t finalized yet.

Only a few outstanding issues remain, one person said, declining to provide more detail.Source – Bloomberg--Agencies





Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021


Buy Our Merchandise (Peace Series)

 


Contribute US to Start Broadcasting



It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm


STRIPE


[Sri Lanka] - Sri Lanka, China sign 9 agreements on cooperation


Police open fire at group of robbers; one person dead


[Sri Lanka] - New liver care center of Ragama Teaching Hospital inaugurated


Sri Lanka anticipating private equity deals amounting to $250mn


Indian HC organizes conference to explore potential of digital public infrastructure for Sri Lanka


School education will be revamped by minimizing problem of assessments - President


[Sri Lanka] - Chinese premier holds talks with Sri Lankan PM; explore cooperation in tidy energy and telecom


Heat advisory provided for numerous provinces, districts


[Sri Lanka] - ACC reveals Women s Asia Cup 2024 in Sri Lanka


[Sri Lanka] - Sri Lanka to promote registration of ships under its flag


Court dismisses initial objections raised in Keheliya s misappropriation case


Five-member SC bench to hear petitions challenging Online Safety Act


Major US bridge collapses after being hit by Colombo-bound ship


[Sri Lanka] - CBSL guv discusses why Parate Law suspension bad for credit supply


[Sri Lanka] - Unique security plans for Good Friday and Easter Sunday


National minimum month-to-month wage to be increased by Rs. 5,000


Investigation ordered into assassination attempt on Magistrate Thilina Gamage


Veteran singer Chandra Kumara Kandanarachchi passes away


T-56 firearm reported missing from Wilgamuwa police station


Govt. to provide 10kg of rice to low-income families before Avurudu


Sri Lanka Central Bank further reduces policy rates


UN Security Council demands immediate ceasefire in Gaza after US abstains


Heavy showers anticipated in parts of the island


Sri Lanka s Chief of Defence Staff visits Kenya s Defence HQ


COPA instructs officials to instantly report importation of 102 spoiled fish containers to CID


Govt prioritizing overhaul of school education and exam systems - President


Buddha Sasana Ministry problems declaration over New Year auspicious times


Three injured in luxury bus accident on Kandy-Mahiyanganaya road


Heavy showers above 100mm expected in several areas tomorrow


Ex-President Maithripala leaves CID after tape-recording statement


Appeals Court quashes findings, suggestions of political victimisation commission


HC to deliver order on Keheliya s revision petition seeking bail


UN chief says there is growing consensus to tell Israel that a ceasefire is needed


Nine students hospitalized after clash at private education institute


5 including two students arrested for taking laptop computers from school s wise class


Cost of a cup of milk tea decreased


Sri Lankan PM arrives in China for official visit


Excise revenue up by 38.5% in February 2024


President reveals rapid development plans for overlooked Mahaweli A and B zones


Bandula s US tour cut short for no-confidence vote against Speaker


IMF representatives meet with Sajith Premadasa


Third day of argument on no-confidence motion against Speaker starts


[Sri Lanka] - Sri Lanka to begin speak with restructure bonds next week - report


15 consisting of schoolchildren injured in bus accident in Wellawaya


[Sri Lanka] - 19 suspects straight connected to the underworld arrested so far - Police


Underworld gunman injured in shootout with STF succumbs to injuries


A modification in dominating dry climate condition expected from today


Underworld gunman and STF member injured in shootout at Ganemulla


[Sri Lanka] - COPE assembles under Rohitha s chairmanship amidst string of member resignations


[Sri Lanka] - President Ranil reveals vision for rapid transformation into export economy


Intermittent fasting linked to high risk of cardiovascular death, study reveals


BIA records sharp increase, serving 850,000 travellers this year AASL Chairman


Vietnam s president resigns after just over a year in office


[Sri Lanka] - Update on Sri Lankans in Haiti amidst escalation of violence


33 including FSP s Duminda Nagamuwa and Lahiru Weerasekara arrested during protest


COPF recommends deferment of CBSL salary increase


Tear gas and water cannons fired at protesters in Pettah





68