At the G-24 press briefing during the IMF-World Bank Annual Meetings on October 22, the G-24 countries advocated for the establishment of a common debt framework for middle-income nations, using Sri Lanka as an example of a nation in need of such support. Currently, the framework is limited to low-income countries.
According to Iyabo Masha, the G-24 Secretariat, Sri Lanka has made significant progress since the IMF’s Article IV Consultation, showing signs of recovery with growth picking up, fiscal buffers increasing, and rising import duties. However, the issue of debt sustainability remains critical for the country.
Masha stressed the need for a comprehensive debt relief system that includes both middle- and low-income countries. She noted that while middle-income nations can engage in the Sovereign Debt Resolution Roundtable, this forum lacks mechanisms for actual debt relief. Countries like Sri Lanka and Lebanon could greatly benefit if discussions around a broader debt framework gain momentum.