The government is in talks with the International Monetary Fund (IMF) to find a solution to the current economic crisis, with Sri Lanka having to find US $ 6.9 billion in debt repayments this year, Finance Minister Basil Rajapaksa has said in an interview with the Financial Times in London.
Minister Basil Rajapaksa had an interview with the Financial Times on the current economic situation in Sri Lanka.
The Minister has said that Sri Lanka was in discussions with the holders of international sovereign bonds to obtain concessions on loans due this year.
He said he was working with all parties and considering all alternatives He pointed out that efforts are being made to alleviate the economic crisis by avoiding default debt.
He also said that he intends to work with the International Monetary Fund and that discussions are ongoing.
Asked whether he would discuss debt restructuring with bondholders, Minister Basil Rajapaksa said such talks were underway.
According to the Financial Times, Sri Lanka, after Belize, Zambia and Ecuador, is on the verge of becoming a sovereign debt defaulter after the outbreak of the pandemic.
According to the newspaper, the Sri Lankan authorities also emphasize that the country can prevent this fate by increasing foreign exchange reserves through tourism and exports with additional assistance from China and India.
