Sri Lanka’s Minister of Foreign Affairs, Ali Sabry, announced plans for the government’s ambitious foreign debt restructuring, aiming to finalize the process by June. This effort could potentially reduce the country’s debt burden by approximately US $17 billion, a significant step towards financial stability. The focus is on negotiating with private investors linked to sovereign bonds to achieve this goal by June 2024, facilitating continued developmental activities within Sri Lanka.
The President’s Media Division elaborated on the Minister’s comments, highlighting Sri Lanka’s commitment to an independent foreign policy known as non-alignment. This approach emphasizes engagement with all nations while maintaining sovereignty and independence. The nation’s strong relationships with Western and Eastern countries, as well as neighbors, have been instrumental in overcoming economic challenges, including securing support from major partners and creditors during negotiations with the IMF.
The government’s strategy includes engagement with key players like the U.S., France, India, and China, with significant progress already made in debt restructuring with the support of major creditor nations. The aim is to conclude debt restructuring by June, which would unlock advantages like reductions in principal amounts and interest payments, potentially alleviating the debt burden by US $17 billion. These efforts align with ongoing partnerships and collaborations with nations like China and India, reflecting Sri Lanka’s commitment to fostering economic growth and attracting investments.
Recent developments, such as the visit of the Japanese Foreign Minister and collaborations with partners like India, demonstrate international support for Sri Lanka’s economic reforms and development agenda. These engagements are pivotal in driving the country’s economic priorities forward and signaling a positive trajectory for Sri Lanka’s financial future.