Sri Lanka is set to make a presentation to its international creditors on Friday, laying out the full extent of the financial crisis currently embroiling the country and its plans for a debt restructuring and multi-billion dollar bailout from the International Monetary Fund.
Sri Lanka is in the midst of its worst economic crisis since independence from Britain in 1948, with financial mismanagement coupled with the Covid-19 pandemic causing it to default on its sovereign debt.
The country’s Ministry of Finance said in a statement via legal firm Clifford Chance that an online call on September 23rd would be open to all creditors and be an “interactive session” in which they will be able to ask questions.
The crisis has seen major unrest in Sri Lankan society, and in July then-President Gotabaya Rajapaksa was forced to resign and flee the country following violent protests.
Rajapaksa’s replacement Ranil Wickremesinghe, himself the subject of numerous protests from those who view him as a continuation of the same regime, has managed to reach a preliminary deal with the IMF that if formalized would provide the country $2.9 billion in loans over four years.
“Authorities intend to update their external creditors on the most recent macroeconomic developments, the main objectives of the reform package agreed with the IMF … and the next steps of the debt restructuring process,” the statement confirmed.
Debt crisis veterans cite uniquely difficult elements in Sri Lanka.