Cannot give a time frame for debt restructuring: State Minister

• Uncertainty looms over timeline for restructuring commercial debts with ISB holders

By Yohan Perera and Ajith Siriwardana   

It is not possible to give a time frame as to when Sri Lanka would end its engagements with M/S Lazards France and M/S Clifford Chance LLP because of the complex situation with regard to the restructuring of debt pertaining to international sovereign bonds(ISB) , State Minister of Finance Shehan Semasinghe told Parliament yesterday.  

 He indicated that it is not possible to give a timeframe as to when the debt restructuring process will end as well.   

“ Restructuring debt on ISBs is a complicated one. Therefore we cannot give a timeframe as when Sri Lanka could end its engagements with Lazards and Clifford Chance. Sri Lanka’s debt restructuring process comprises domestic debt restructuring, bilateral debt restructuring and restructuring of debts which are to be settled with international sovereign bond (ISB) holders. ,” the state minister said.   

The State Minister who was responding to an oral question raised by MP Niroshan Perera , the state minister said the original agreement with Lazards which was originally signed on May 26 2022 has been renewed three times and is due to end on November 25 2024. The agreement with Clifford Chance which was originally signed on July 1 2022 has been renewed three times. The Agreement is to end on November 30 2024.   

A sum of $ 6.9 million has been paid to Lazards while a sum of $ 4.6 million to Clifford Chance according to the Minister since 2022.