India, SL start bilateral discussions on debt-restructuring

India and Sri Lanka have begun bilateral discussions on the restructuring of latter’s external debt. The Indian High Commission yesterday said in response to a recent request from the Sri Lanka Government it held the first round of discussions on 16 September in Colombo on restructuring Sri Lanka's bilateral official debt to India.

“The discussions held in a cordial atmosphere symbolise India's support to early conclusion and approval of a suitable IMF Program for Sri Lanka, for which financing assurances from creditors to make Sri Lanka's debt sustainable are required. India will continue to remain closely engaged with relevant Sri Lankan stakeholders,” the High Commission added. 

In a separate statement India also assured that it will continue to provide support to Sri Lanka whenever possible to strengthen the country economically.

The High Commission affirmed India’s continued support to Sri Lanka in a statement issued in response to media inquiries regarding reports that India will no longer provide financial support. So far this year India’s assistance has been nearly $ 4 billion. 

“We continue to be supportive of Sri Lanka in all possible ways, in particular by promoting long-term investments from India in key economic sectors in Sri Lanka for its early economic recovery and growth,” the High Commission said.