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Friday, 19 August 2022 01:39 - - {{hitsCtrl.values.hits}}
The Central Bank yesterday revealed that Sri Lanka is anticipating to finalise the Staff-Level Agreement with the International Monetary Fund (IMF), upon a mission visit by the end of the month.
“The IMF mission is planning to come towards the end of this month with an intention to reach a Staff-Level Agreement on the policy package,” Central Bank Governor Dr. Nandalal Weerasinghe told journalists yesterday.
He said Sri Lanka has achieved almost all targets and policies.
“We have made good progress so far on the IMF program. The completion of the Staff-Level Agreement will certainly improve the economic conditions further,” he stressed.
Dr. Weerasinghe said once Sri Lanka reaches a Staff-Level Agreement, they can start approaching the creditors for a debt restructuring process with the support of the advisers.
“So far we have been working on background work for us to share data, and analyse scenarios. Based on these assessments, once we reach the Staff-Level Agreement, we will reach all multilateral and commercial creditors,” he explained.
The Governor also said they were in the process of appointing a debt restructuring rating recognition agent and a communication agent for the external debt restructuring program.
On 1 August, the Cabinet of Ministers approved hiring a new debt restructuring rating recognition agent and a communication agent for the external debt restructuring program.
The new agents are in addition to the already appointed Lazard Institute of France and Clifford Chance LLP Institute – but was a recommendation by them.
On 12 April, Sri Lanka announced a pre-emptive negotiated default of all external debt as of that date after it was realised the status was not sustainable. As of the end of last year, Sri Lanka’s external debt amounted to $ 51 billion, whilst the figure is likely to have ballooned following the sharp depreciation of the rupee.
“From 2004 to 2014 the total sovereign bonds issued was $ 5.5 billion, but during the four years of 2015 to 2019, the Government issued bonds worth $ 12.05 b sovereign bonds. These have been traded among many international markets such as the US, Germany, UK, and France. Tracing these bonds is going to be a tedious and complex task,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said on 2 August.
