Debt restructuring: ADB, World Bank role urged

COLOMBO: Sri Lanka has not reached any initial agreement with the IMF on debt relief, and its largest creditors – the Asian Development Bank (ADB) and the World Bank – are urged to come up with a package that would speed up its debt restructuring process, Sri Lanka’s Ambassador to China Palitha Kohona told the Global Times.

He also called for more assistance from partners after the country claimed bankruptcy and imposed a state of emergency amid escalating protests and persisting shortage of daily necessities.

“The IMF visited Sri Lanka at the end of last month, and judging by report we received the official discussions were very satisfactory. We have appointed a team of legal advisors in London, and team of experts who understand debt restructuring from the West,” Kohona said.

But he noted that discussions with the IMF are only at a preliminary stage, and once the new government is installed, there will be new arrangement for the next meeting with the IMF.\

Kohona said it is hoped that terms and conditions attached to the IMF package will not be “onerous.”