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Debt restructuring with bondholders hits a snag with disagreement on two areas

16 April 2024 08:03 am - 15     - {{hitsCtrl.values.hits}}

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Colombo, April 16 (Daily Mirror) - Sri Lanka’s debt restructuring process with private bondholders is stuck with two aspects of disagreement, whereas it is well underway with bilateral creditors, a top official said yesterday.

Chief of Staff of the President Sagala Ratnayake told journalists that both parties, instructed by respective consultants, held two talks this year with each submitting proposals and counter-proposals.

He said the International Monetary Fund (IMF) cited the government’s proposals as compliant, whereas the bondholders’ proposals were not.

After that, he said there were four areas with disagreements were identified and subsequent negotiations resulted in narrowing them down to two.

Asked whether it was the local dealer or foreign dealers (bondholders) who disagreed, Mr. Ratnayake said these details could not be divulged. “We cannot come out with details on these factors as we have agreed to maintain confidentiality concerning discussions,” he said in this regard.

Also, he said discussions with private dealers are only a part of the debt restructuring programme. “We have had a successful round of negotiations with the Official Creditor Committee (OCC) which comprises bilateral creditors. Sri Lanka has also had a successful round of discussions with China as well. We have only to decide whether there is going to be a single agreement with OCC or we are going for individual agreement with each member state of the OCC,” he said in this regard. He assured that Sri Lanka has no issue with the bilateral creditors.

"We have only to sign agreements with OCC members," he said.

Referring to the sentiments expressed by the IMF, Mr. Ratnayake said all international donors including the IMF have expressed its satisfaction with the economic progress Sri Lanka has achieved lately. “However, IMF has made it clear that it will stick to its programme,” he said.


  Comments - 15

  • Eper Tuesday, 16 April 2024 08:24 AM

    All what will happen is debt will never be settled in 2024 and will be passed over to the next government and we will take more loans to cover state expenditure in 2024. You don’t need an economist to predict the future of Lanka. In conclusion, how could we ever expect the qualified to continue living in Sri Lanka without migrating to developed countries

    RF Tuesday, 16 April 2024 12:29 PM

    Where did they say they they will settle debt this year??? The purpose of debt restructuring is to buy more time for settlement of debt... What a dumb statement...

    Gamini Tuesday, 16 April 2024 08:44 AM

    When somebody in the govt. said 10 days ago that the bond holders have agreed to delay the payments until 2028, where was the confidentiality? Our people are the best liars I have seen. They will not wait that long.

    Anura Nanayakkara Tuesday, 16 April 2024 09:00 AM

    WHAT AUTHORITY HAS SAGALA TO TALK ABOUT THESE THINGS. HE IS NOT EVEN IN THE PARLIAMENT NOR A QUALIFIED PERSON TO TALK ON THESE ISSUES.

    saman Tuesday, 16 April 2024 02:50 PM

    Being the girl friend.

    Nimal Tuesday, 16 April 2024 11:06 AM

    Does Sagala know what a bond really is how bonds are issued and traded on a market?

    Bn Wednesday, 17 April 2024 11:27 AM

    Another idiotic remark.

    Ranjith Tuesday, 16 April 2024 11:51 AM

    There is no economic recovery all vehicle imports stopped, imports curtailed, settlement of debts stopped in 2022 and dollar reserves are not enough to pay the loans and interest accrued on loans. We are still borrowing for our survival and to pay for our basic needs and concessions given to poor. Senior citizens and those who have lost jobs are suffering, cost of living is unbearable, please don't talk about economic recovery, long long way to go.

    Chimmpy Tuesday, 16 April 2024 02:26 PM

    Sagala, the biggest snag is yourself and your boss Nariya Ranil. !!!!!!!!!!!!!!!!!!!!

    MAY THE LORD GIVE OUR VOTERS THE INSIGHT AND GUIDANCE TO CAST THEIR VOTE. Tuesday, 16 April 2024 02:43 PM

    CHINA!! THE DICTATOR WILL AGREE BECAUSE HE HAS A VERY CLEAR AGENDA AND IS WORKING TOWARDS IT. UNFORTUNATELY, OUR GOVERNMENT AND DECISION MAKERS ARE MOUTHING OFF WITHOUT THINKING OF THE IMPLECATIONS GOING FORWARD. CHINA HAS BEEN AND ALWAYS WILL BE READY TO HAND OUT LOANS AND DONATIONS TO OUR CORRUPT AND DESPERATE GOVERNMENT WHILE CLEARLY FOCUSED AND WALKING THE ROAD WHICH WILL LEAD THEM TO THEIR AGENDA WITH US WITHOUT CO-OPERATION OF THE GOVERNMENT WHEN THE TIME COMES. WE WILL BE TAKEN BY SURPRISE, AS CHINESE MILITARY AND DEFENCE ARE DECADES AHEAD OF US. WE NEED A GOVERNMENT WITH POLITICIANS WHO CAN LOOK/READ INTO THE FUTURE AND TAKE THE COUNTRY IN THE DIRECTION TO PROSPER THE COUNTRY AND ITS PEOPLE AND NOT IN THE GOVERNMENT TO FEATHER THEIR NEST AND THE NESTS OF THEIR FAMILY/STOOGES.

    Bushel Tuesday, 16 April 2024 05:46 PM

    Who the hell is Sagala? Fron where did he qualify and what expertise he has on the subject and with whose money enjoying the perks!? Only hope is that people will stop eating grass at least at this elections.

    HOOF THEM ALL OUT WITH OUR VOTES PEOPLES POWER Thursday, 18 April 2024 09:12 AM

    PRESIDENT'S CHIEF OF STAFF

    Anthony. R Tuesday, 16 April 2024 07:40 PM

    Who is this man?Sagala, what does he know about bonds,and trade? He is neither have a mandate nor a member in the parliament . Comedies

    Kevin Wednesday, 17 April 2024 03:28 AM

    Game over. As expected. Now the IMF agreement will come to an end as all previous IMF agreements SL had in the past.

    KANDDHUHARALALAGA SURESH ATHULA OLAGAMA Wednesday, 24 April 2024 10:38 AM

    I think we have to look at this without a political angle. however much we hate these individuals, we will have to go for debt Re-structure with the Bond holders... and any government that follows will also have to adhere to any agreements reached as its the state that is the party to the agrmeent... the major issue is that the present system and the people who govern is only focusing on loans and more loans ... and not on generating valuable Forex ... the debt relief period should be used to maximize forighn income and not get into more debt .... for that to happen we need new Chage and investor confidence , and this will only happen with a significant change in the political system and culture in the country.


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