Sri Lanka’s debt restructuring

By Kelum Bandara 

French Ambassador Jean-François Pactet said yesterday that  the Official Creditor Committee (OCC) of Paris Club is working hard  with the hope of concluding an agreement on Sri Lanka’s debt restructuring soon.  He said China, as a bilateral creditor to Sri Lanka, is an observer of the committee and is kept informed of developments.   

Sri Lanka has reached an “agreement in principle” with  India and the Paris Club group of creditors, including Japan, on a debt  treatment plan that will help the country tap the next tranche of the  International Monetary Fund’s nearly $ 3 billion recovery package.   

 The OCC and Sri Lanka agreed on the main parameters of a  debt treatment consistent with those of the Extended Fund Facility  (EFF) arrangement between Sri Lanka and the IMF.