US extends support to participate in Sri Lanka’s debt restructuring process

US Treasury Secretary Janet Yellen

President Ranil Wickremesinghe

As a creditor country, the US has extended support for Sri Lanka’s debt restructuring process joining with other Paris Club Members. 

In a communiqué to President Ranil Wickremesinghe, who is also the Finance Minister, US Treasury Secretary Janet Yellen has informed their full cooperation for debt negotiations and restructuring process, the President’s Media Division said.

The US Treasury has also pledged support to continuously engage with their other Government agencies along with the World Bank and Asian Development Bank, to assist the people of Sri Lanka.

Acknowledging the suggestion by President Wickremesinghe to set up a debt forum, she has insisted on expediting the engagement with all bilateral creditors, whilst outlining the critical need for the full cooperation of all official creditors through timely participation and equal burden sharing. 

The US Treasury has welcomed the Government’s decision to seek International Monetary Fund (IMF) assistance through an Extended Fund Facility (EFF) which reached a Staff-Level Agreement recently.

She cited aid for school children’s nutrition, food vouchers for pregnant women and new mothers, fertiliser, and cash transfers for small and medium-scale (SME) farmers to increase agriculture production as key initiatives that the US has supported the people of Sri Lanka.