Sri Lankan president says Debt restructuring talks underway with IMF, India, China

Sri Lanka has started debt restructuring talks with the IMF, India and China, President Ranil Wickremesinghe said on Sunday, exuding confidence that if the discussions move forward in a “systematic way”, the country would tide over its worst economic crisis. Addressing a gathering in the Siyambalanduwa district, Wickremesinghe said talks have also started with private creditors on debt restructuring.

“For the first time yesterday, we began talks with the IMF, China, Japan and India on lessening our debt burden,” he said.

“It will be difficult for us to pay back debt, still we have to find ways to lessen our debt burden. We are faced with a situation where we are unable to meet interest payments. But I’m hopeful that if our talks could be carried forward in a systematic way, we would be able to solve our problems,” he said.

The president said he spoke to the Chinese finance minister while Sri Lanka’s finance minister Shehan Semasinghe on Saturday started talks with India on debt restructuring in Washington.

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Sri Lanka is nearly bankrupt and has suspended repaying its $51 billion foreign debt, of which it must repay $28 billion by 2027.