President Ranil Wickremesinghe announced a significant milestone in Sri Lanka's recent history, marking it as a unique turning point as the country reached final restructuring agreements for its external debt owed to bilateral creditors. In his special address to the nation on Wednesday (26) evening, he emphasized the positive outcomes of the government's efforts.
Key Announcements:
Final Restructuring Agreement: Sri Lanka finalized a restructuring agreement for USD 5.8 billion of debt with the Official Creditor Committee in Paris, France.
Debt Treatment with EXIM Bank of China: The country also signed debt treatment agreements with the Export-Import Bank of China to restructure USD 4.2 billion of debt.
Formal Procedures: Necessary formal procedures are being implemented.
International Trust:
President Wickremesinghe declared this achievement as 'good news' for the country, indicating increased international trust in Sri Lanka.
He mentioned that previously, the international community did not accept Sri Lankan letters of credit, but now they offer assurances regarding Sri Lanka’s credibility.
Parliamentary Session:
The President announced that these agreements would be presented in Parliament by Prime Minister Dinesh Gunawardena during a special session on July 02.
He urged all patriotic MPs to help pass these agreements in Parliament.
Economic Recovery and Debt Restructuring:
Debt restructuring agreements will postpone all bilateral loan payments to foreign countries until 2028, with repayment terms extended until 2043 on concessional terms.
In 2022, 9.2% of Sri Lanka’s GDP was allocated to foreign debt payments. This percentage is expected to decrease to less than 4.5% between 2027 and 2032.
The successful debt restructuring allows the resumption of suspended transactions and foreign-funded development projects.
Commitment to Economic Stability:
President Wickremesinghe emphasized that economic issues cannot be resolved through strikes or threats but by working together to strengthen the economy.
He highlighted that while some are trying to disrupt the country's progress, they would ultimately face shame for betraying their nation.
He expressed gratitude to ministers, officials, and the majority of the people who supported the country through challenging times.
Path Forward:
Relief has been provided to the people as economic conditions improved.
The President emphasized the need to continue on the correct path to further alleviate difficulties and strengthen the economy.
President said that he accepted the challenge unconditionally when proposed conditions to rescue the country from its economic abyss, confident in his ability to rebuild the economy through his experience and planned policies.
In conclusion, President Wickremesinghe reaffirmed his commitment to steer Sri Lanka towards economic recovery and growth, urging the nation to join hands in this endeavor.
Key Announcements:
Final Restructuring Agreement: Sri Lanka finalized a restructuring agreement for USD 5.8 billion of debt with the Official Creditor Committee in Paris, France.
Debt Treatment with EXIM Bank of China: The country also signed debt treatment agreements with the Export-Import Bank of China to restructure USD 4.2 billion of debt.
Formal Procedures: Necessary formal procedures are being implemented.
International Trust:
President Wickremesinghe declared this achievement as 'good news' for the country, indicating increased international trust in Sri Lanka.
He mentioned that previously, the international community did not accept Sri Lankan letters of credit, but now they offer assurances regarding Sri Lanka’s credibility.
Parliamentary Session:
The President announced that these agreements would be presented in Parliament by Prime Minister Dinesh Gunawardena during a special session on July 02.
He urged all patriotic MPs to help pass these agreements in Parliament.
Economic Recovery and Debt Restructuring:
Debt restructuring agreements will postpone all bilateral loan payments to foreign countries until 2028, with repayment terms extended until 2043 on concessional terms.
In 2022, 9.2% of Sri Lanka’s GDP was allocated to foreign debt payments. This percentage is expected to decrease to less than 4.5% between 2027 and 2032.
The successful debt restructuring allows the resumption of suspended transactions and foreign-funded development projects.
Commitment to Economic Stability:
President Wickremesinghe emphasized that economic issues cannot be resolved through strikes or threats but by working together to strengthen the economy.
He highlighted that while some are trying to disrupt the country's progress, they would ultimately face shame for betraying their nation.
He expressed gratitude to ministers, officials, and the majority of the people who supported the country through challenging times.
Path Forward:
Relief has been provided to the people as economic conditions improved.
The President emphasized the need to continue on the correct path to further alleviate difficulties and strengthen the economy.
President said that he accepted the challenge unconditionally when proposed conditions to rescue the country from its economic abyss, confident in his ability to rebuild the economy through his experience and planned policies.
In conclusion, President Wickremesinghe reaffirmed his commitment to steer Sri Lanka towards economic recovery and growth, urging the nation to join hands in this endeavor.
