The Government appointed financial and legal advisors – Lazard and Clifford Chance have already approached Japan, China, and India on the debt restructuring process, a top Minister revealed yesterday.

“The international consultants have already made an initial approach to different creditor countries such as India, China, and Japan including Paris Club members. We will keep our fingers crossed till an agreement is reached,” Acting Cabinet Spokesman and Minister Dr. Ramesh Pathirana said at the post-Cabinet media briefing yesterday.

Noting China, India, and Japan are the key creditors of Sri Lanka, he said other borrowers will also be approached correspondingly. 

The Government reached a Staff-Level Agreement with the International Monetary Fund (IMF) for an Extended Fund Facility of $ 2.9 billion. However, before the disbursement of the bailout package, all creditors must agree to restructure their existing loans with Sri Lanka.

In May, Lazard Institute of France was hired by Sri Lanka, along with international lawyers Clifford Chance LLP Institute, to guide the Government through the process of restructuring its debt. In addition, a new debt restructuring rating recognition agent and a communication agent were hired last month to fast-track the external debt restructuring program. 

“No agreement has been reached with China as yet,” Dr. Pathirana confirmed in response to a question raised by the journalists.

On 7 September, US Treasury Secretary Janet Yellen extended support for Sri Lanka’s debt restructuring process joining with other Paris Club Members. 

Govt. to reveal IMF deal to Cabinet and Opposition Leader