SL calls proposals to appoint financial and legal advisors to restructure debt, negotiate with IMF

Following delays running into weeks, the Finance Ministry has finally called for Requests for proposals (RFPs) from reputed global firms to appoint financial advisors and legal consultants to support the country’s sovereign debt restructuring exercise and discussions with the International Monetary Fund (IMF).

“The Government of Sri Lanka through Ministry of Finance has published the Request for Proposals (RFPs) from interested parties/agencies for the appointment of Financial Advisors and Legal Consultants for managing its external debt sustainability,” the Central Bank (CB) announced on Saturday.

Last Friday, newly appointed CB Governor Dr. Nandalal Weerasinghe assured that financial advisors and legal consultants would be appointed within two weeks, expediting the procurement process. 

The bids will be closed on 16th of this month and subsequently authorities are expected to complete the evaluation process within a week and finalise suitable parties.  

The financial advisor will be tasked with supporting the government in debt management including evaluating government debt stock and representing the government’s interest in negotiation with creditors and arranging meetings with them.  

The financial advisor will also be responsible for designing a mechanism and process to engage with IMF in improving medium and long-term debt engagement and reforming strategies.

The government is seeking to appoint an experienced financial advisor with global and regional presence. Further, the government also welcomes joint bids from two or more financial advisors.

Meanwhile, the legal consultant will advise the government on debt management strategies and execution of such strategies while reviewing legal and regulatory issues on debt management.

Along with the financial advisor, the legal consultant will also be tasked with representing the government’s interest in negotiation with creditors and arranging meetings.

In addition, the legal consultant will also be tasked with coming up with strategies for the government in securing development assistance from official development agencies and during the debt restructuring exercise and reaching consensus with private creditors and bilateral official creditors on possible re-profiling of public debt. 
The legal consultant is to be appointed for six-month fixed term, which can be extended to one year.

The financial advisor and the legal consultant are also expected to advise the government on the repayment of US$ 1 billion ISB maturing on July 25th.  

The Finance Ministry noted that it reserves the right to appoint one or more bidders under same or different terms and the right to negotiate with selected bidder or bidders on the terms of the appointment.