2023-11-29 10:37:12
Sri Lanka Negotiating Debt Relief Agreement with Lenders
Colombo: The Sri Lankan government is currently in negotiations for a debt relief agreement with lenders, according to government sources. However, a confirmation from the bureaucratic debt committee is yet to be received, Reuters reported on Wednesday.
The country, which is in the midst of a severe financial crisis, has been involved in debt restructuring since last year. Sri Lanka is currently in talks with lenders as it strives to address its financial predicament.
Japan, along with India and France, heads the group of countries that have extended credit to Sri Lanka. China, the country’s largest lender, did not join the group.
It has been revealed that Sri Lanka has entered into an agreement with China’s Export-Import (Exim) Bank to repay its debt of $4.2 billion. Following this deal, the country is reportedly in the process of negotiating a deal with other lenders.
The Sri Lankan government’s efforts to seek debt relief from lenders come as the country grapples with a financial crisis, highlighting the need for effective financial management and strategic partnerships with global lenders.
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