Julie Kozack, Director of Communications at the International Monetary Fund (IMF), provided an update on Sri Lanka’s economic performance and debt restructuring efforts during a recent press briefing.
“With respect to Sri Lanka’s economic performance, macroeconomic policies in Sri Lanka are starting to bear fruit.Commendable outcomes include a rapid decline in inflation, robust reserve accumulation, and initial signs of economic growth, while also preserving stability in the financial system.Overall, program performance has been strong,” She said.
The next steps with respect to the debt restructuring are to conclude negotiations with external private creditors and to implement the agreements in principle with Sri Lanka’s official creditors.
“The domestic debt operations are largely completed . The initial debt restructuring negotiations with external bondholders ended in mid-April without an agreement, and discussions are continuing with a view to reaching agreement in principle. And on the official creditor side, these agreements in principle still need to be finalized.”
On March 21st, the IMF staff and the Sri Lankan authorities reached a staff-level agreement for the second review of the program and concluded the Article IV mission.