SJB happy about government agreement with OCC on debt restructure: SJB MPs

Colombo, June 27 (Daily Mirror) - The agreement the government has reached with official creditors on debt restructuring is welcomed, Samagi Jana Balawegaya (SJB) MPs Harsha De Silva and Kabir Hashim said today. 

"We are happy about the agreement that Sri Lanka has reached with countries such as India, China and Japan and the Paris Club members on a debt restructuring arrangement. We won't be cruel and are not prepared to jeopardize it," MP De Silva told journalists.

However, he said the debt restructuring issue is not fully over as an agreement has to be reached with commercial creditors, including international sovereign bond holders. 

"As we have heard, the ISB holders have offered a 7 percent hair cut. This is going to be a macroeconomic development-linked one. Sri Lanka is going to get a bigger haircut based on its GDP growth. The haircut is going to be reduced if Sri Lanka's GDP drops over the years. Therefore, we feel that Sri Lanka should not agree to such an arrangement. However, the alternate proposal made by the Sri Lankan government is more welcomed," he said.

Also, he said Sri Lanka should use the 37 percent haircut that Ghana secured for its commercial as a benchmark.

MP Hashim also expressed similar sentiment and called for a better deal with commercial creditors.