Colombo, Aug. 19 (BNA) The head of Sri Lanka’s central bank said Thursday that he hopes the government will reach an initial agreement that could lead to a rescue package with the International Monetary Fund when its officials visit the crisis-hit island country later this month. .
Nandalal Wierasinghe, governor of Sri Lanka’s central bank, said he hoped IMF and Sri Lankan government officials could “finish and reach staff-level agreement” on the policy package during their meetings.
Sri Lanka in April announced the suspension of the repayment of foreign loans. Its foreign debt totals $51 billion, of which it must pay $28 billion by 2027. The country has said it needs to restructure all of its debt, according to the Associated Press.
Weerasinghe told reporters on Thursday that the needed agreement with the IMF would give them “a clear picture of debt sustainability and the debt targets that we have to achieve in the next 10 years.”
Once an agreement is reached, Weerasinghe said Sri Lanka would reach out to its sovereign bond holders and other external creditors.
“We hope that all of our creditors will support Sri Lanka once they see the strong macroeconomic program approved by the IMF,” he said.
Sri Lanka’s new President Ranil Wickremesinghe said two weeks ago that his government had begun negotiations with the International Monetary Fund on a four-year rescue plan and had begun finalizing a debt restructuring plan.
Wickremesinghe was elected last month to complete the remainder of Rajapaksa’s five-year term, which ends in 2024. The Wickremesinghe government is preparing a national policy roadmap for the next 25 years aimed at reducing public debt and transforming the country into a competitive export economy.
Wickremesinghe stressed that Sri Lanka needs long-term solutions and a strong foundation to stop the recurring economic crises.
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