Sri Lanka’s economic indicators including international ratings would be upgraded and people will start reaping economic benefits from the end of next year, said Deputy Minister of Economic Development, Anil Jayantha Fernando at a media briefing at the Finance Ministry on Thursday.
“Economic stabilisation is key to take the country out of the abyss created by past regimes. At the time the Government assumed office those responsible for the crisis had unilaterally suspended external debt servicing in April 2022, entered into IMF program for Extended fund facility (EFF) of approximately USD 3 billion over a period of four years to be received in eight installments, and paddled through the IMF program and debt restructuring process connected to in in line with debt sustainability analysis connected to it,” he said.
These efforts toward financial stability have been independently acknowledged by third parties, including rating agencies which have upgraded the ratings by several notches, which was only possible due to the correct prioritisation and implementation of economic stabilisation measures.
“However, after, considering both pros and cons of the context prevailed at that time in terms of social, political and economic perspective, the government proceeded with the options in the best interest of the people of the country.”
In the lead-up to the board approval from the IMF, the government is engaging with necessary stakeholders to obtain the next tranche of the EFF.
It consists of domestic and external restructuring Domestic debt restructuring was completed in July 2023. External restructuring excludes multilateral creditors on various grounds and arguments. The rest consists of official bilateral debt and private ISB holders.
