12-year debt moratorium from India: just an option not concretized yet

• The secretariat established by France , India and Japan discusses the debt restructuring process of Sri Lanka , and no final decision has been made yet

By Kelum Bandara 

Reports about the 12- year debt moratorium for the repayment of loans from India hold no truth since it is possibly an option under consideration with no concrete decision yet, a top source said.There were media reports earlier in India, quoting  India’s Export Credit Guarantee Corporation (ECGC) Ltd’s chairman-cum-Managing Director M.Senthilnathan that India plans a 12- year debt moratorium on Sri Lanka. The top source said the secretariat established by France , India and Japan discusses the debt restructuring process of Sri Lanka , and no final decision has been made yet .

 However, the source said such an option would have been among steps discussed by the secretariat .

During the visit of President Ranil Wickremesinghe to India recently, debt restructuring did not feature since it was matter being handled by the secretariat.