Economic analysts said that Sri Lanka’s successful completion of its debt restructuring process marks a unique milestone in the country’s economic history.
They said that the restrictions on Sri Lanka’s access to the capital market will now be lifted, the country’s exchange rates and foreign reserves will stabilise, and the basic conditions to advance the international rankings that had fallen will be met.
Senior Prof. Sirimal Abeyratne, Department of Economics, University of Colombo and former Secretary to the Ministry of Finance Dr. R.H.S. Samaratunga said that Sri Lanka, which went bankrupt in 2022, restructured its debt and got out of bankruptcy within two and a half years, which should be an example for the recovery of economically collapsed states.
They also said that the Government has now restructured the debt in three ways to pay back a debt of US$ 84 billion and added that Sri Lanka has restructured a debt amounting to US$ 17.5 billion and obtained concessions.
According to the debt sustainability framework agreed upon with the International Monetary Fund (IMF) by the year 2032, our debt burden should reduce, and the debt obtained should reduce while the ability to repay the foreign debt should be increased.
Economic growth is at seven to eight percent annually and needs to be sustained for 10-20 years. Else, we will have to face an unstable economic future again, they added.
