President Ranil Wickremesinghe participating in a high-level panel discussion at the Global Leaders’ Summit for a New Global Financing Pact, in Paris yesterday (22), discussed the country’s experience with debt restructuring and the need for a comprehensive approach to address the challenges faced by middle-income nations.
He said Sri Lanka faced limited access to financing and took ownership of its debt and economic restructuring program.
The President emphasized the need for timely and automatic access to concessional financing and highlighted the high costs incurred during the process. He also called for improved interaction between creditors and debtors and suggests a new approach to address geopolitical issues.
President Wickremesinghe emphasized the urgency of restructuring to avoid instability and advocated for a separate process for middle-income countries to address their unique challenges.
President Wickremesinghe also expressed his gratitude for the IMF’s intervention and Sri Lanka’s coordination, which allowed dealing with both creditor groups, adding that ongoing negotiations with Japan, India, and China regarding trade integration and development programs also aided the process.
However, President Wickremesinghe highlighted the need for improved interaction between the committee and debtors during the restructuring process, suggesting that a new approach is necessary.
