Sri Lanka announces successful completion of OCC and IMF consultation process

Treasury Secretary Mahinda Siriwardena (centre) with the visiting IMF Mission

The Government yesterday announced the completion of consultations with Sri Lanka’s Official Creditor Committee (OCC) and the IMF regarding the compliance of the Agreement in Principle (AIP) terms with the Comparability of Treatment (CoT) principle and the parameters of the IMF-supported program.

This is a follow up to AIP reached with representatives of its international and local holders of International Sovereign Bonds (ISBs) on 19 September 2024.

“Sri Lanka is pleased to report that formal confirmation has been received from the OCC that the terms of the AIP as it stands are compatible with the CoT principle,” Treasury said in a statement. Concomitantly, the authorities have also received confirmation from the IMF staff that the AlP terms meet program parameters under the EFF arrangement second review macro framework, when considered in conjunction with the restructuring of official claims in line with the terms agreed with the OCC and China Exim Bank in June 2024.

“Following the Presidential elections held in Sri Lanka on 21 September and the appointment of the new Government on 25 September, the Sri Lankan authorities confirm their endorsement of the program debt targets and the AIP terms as announced on19 September and confirm their intention to expedite the implementation of the ISBs’ restructuring transaction in line with these terms,” the statement added.

The Government also thanked all its creditors as well as the IMF and the OCC for their good faith engagement and continued support throughout this process.