Debt restructuring talks with bondholders and IMF discussion to run parallel

Signalling a clear bias for action, the newly appointed Central Bank Governor, Dr. Nandalal Weerasinghe told reporters last Friday that his plan is to run parallel talks with the bondholders and the International Monetary Fund (IMF) for both debt restructuring and programme support to ensure a softer form of default. 

Speaking on Friday in his first press conference as the Governor, he also said that earlier instructions by the President issued about a month ago to initiate debt restructuring hadn’t even begun, drawing the country closer to a hard default and economic apathy. 

“Programme support and debt restructuring will go parallel and would be expedited,” said Dr. Weerasinghe.
Sri Lanka’s economy has been hit by soaring inflation, commodities shortages and daily power cuts crippling economic and household activities for months. 

But the Gotabaya Rajapaksa administration and its key officials including the previous Central Bank Governor have constantly been in a state of denial of the precarious nature of the country’s economy.

Now the administration is facing massive public anger, as they demand the resignation of both Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa.

“Everyone has recognised that delaying and denying and not telling the truth is not going to work,” Dr. Weerasinghe said without pulling any punches. 

“So, we have to be truthful, we have to take strong actions and that will deliver the results”, he stressed. 
Commenting on why he took the job despite its clear risks and dangers, he said he watched closely the sufferings of the people in Sri Lanka. 

“I have been closely monitoring the sufferings of the people of this country. The Central Bank as an independent institution has an accountability and responsibility to these people, not to any political party,” he said.
Debt restructuring...

People badly hurt by the massive economic hardships are still taking to the streets and the Galle Face Green was flooded with peacefully protesting crowds on Saturday, continuing the public protests for two weeks running. 
But the Rajapaksa administration is of the false belief that the protesting crowd is still a minority and politically-motivated.

People badly hurt by the massive economic hardships are still taking to the streets and the Galle Face Green was flooded with peacefully protesting crowds on Saturday, continuing the public protests for two weeks running. 
But the Rajapaksa administration is of the false belief that the protesting crowd is still a minority and politically-motivated.