Sri Lanka Chamber urges IMF to proceed, China to give full debt assurances

ECONOMYNEXT – Sri Lanka’s Ceylon Chamber of Commerce has urged the International Monetary Fund to proceed with re-structuring undertakings already given by India and the Paris Club and for China to give full assurances.

India and the Paris Club has given specific assurances to re-structure debt along the financial envelope of an IMF program. China has given an upfront moratorium of two years and offered to re-structure debt.

“The Chamber appreciates the support given by China in the economic development of Sri Lanka and requests to work with IMF in order for Sri Lanka to receive its much needed funding as a key bilateral creditor,” business association said.

“The Ceylon Chamber would like to urge the IMF to consider the assurances received thus far and initiate the approval process, as continual delays will place Sri Lanka in an extremely vulnerable social and economic position.

“The securing of the IMF program will be a crucial first step in Sri Lanka’s debt restructuring efforts which will reduce the present economic uncertainty.

“The Government has carried out an initial set of reforms and we expect more reforms to take place post IMF Board approval, that will provide an impetus towards economic revival.”

The full statement is reproduced below:

Ceylon Chamber Appreciates the Assurances provided by Global Creditors Thus Far

The Ceylon Chamber welcomes and appreciates the financial assurances provided by creditors thus far, towards achieving Board approval from the IMF. The timely announcements by India, Paris Club members including members such as Japan, U.S. and UK, and non-members such as Hungary, are highly encouraging and appreciated by the business community at this time.

We are also encouraged by the assurances provided by the international bondholders to engage with Sri Lanka towards restoring debt sustainability.

We look forward to similar assurances from other commercial and bilateral creditors including China, in line with the IMF requirements that will result in a swift approval of the IMF program.

The Chamber appreciates the support given by China in the economic development of Sri Lanka and requests to work with IMF in order for Sri Lanka to receive its much needed funding as a key bilateral creditor.

The securing of the IMF program will be a crucial first step in Sri Lanka’s debt restructuring efforts which will reduce the present economic uncertainty. The Government has carried out an initial set of reforms and we expect more reforms to take place post IMF Board approval, that will provide an impetus towards economic revival. The Ceylon Chamber would like to urge the IMF to consider the assurances received thus far and initiate the approval process, as continual delays will place Sri Lanka in an extremely vulnerable social and economic position.