IMF wants SL to finalize deals with creditors ahead of second review in June

Colombo, Dec 13 (Daily Mirror) - Sri Lanka needs to enter into agreements with its official and private creditors before the second review of the Extended Fund Facility (EFF), which is expected to be concluded by the end of the first half of next year, IMF Senior Mission Chief for Sri Lanka, Peter Breuer said.

He said the agreements that have been entered with creditors in-principle need to be converted into real agreements before the second review.

The IMF team is scheduled to visit Colombo March-April next year and is expected to finish the second review by June.

Sri Lanka has entered into in-principle debt restructuring deals with the Official Creditor Committee (OCC) led by France, China and India and also with Exim Bank of China.

However, Sri Lanka is yet to strike a deal with its commercial creditors or the bondholders. An initial proposal involving restructuring debt linked to GDP growth by the bondholders was rejected by the Sri Lankan authorities.