After Sri Lanka struck a loan arrangement with the International Monetary Fund, Japanese Finance Minister Shunichi Suzuki urged all creditor nations to consider Sri Lanka’s debt restructuring.
Suzuki said in a press conference that it is crucial for all creditor nations, including China and India, to get together to discuss Sri Lanka’s debt restructuring. This is according to the Sri Lankan publication Daily Mirror (Friday).
This comes after the International Monetary Fund and Sri Lanka agreed to a $2. 9 billion rescue package over four years to aid the South Asian nation embroiled in a severe economic crisis.
For its part, the IMF reiterated that the goals of Sri Lanka’s new programme supported by the Fund are to restore macroeconomic stability and debt sustainability in a statement released following 9 days of deliberations in Colombo.
With a population of 22 million, Sri Lanka is suffering from a catastrophic economic crisis that has been accompanied for months by acute shortages of food, gasoline, and medical supplies.
In the middle of April, Sri Lanka stopped paying its $51 billion in foreign debt. The International Monetary Fund stated that restructuring this debt is a requirement for any financial help from it.
Japan requests talks on Sri Lanka’s debt restructuring from creditor nations.
About Author
