Minister of State for Finance Shehan Semasinghe said that Sri Lanka will soon hold another round of talks with representatives of its bondholders’ group. But he further mentioned that a specific date for these talks has not been decided yet.
Last month, Sri Lanka rejected a proposal brought by international bondholders to restructure more than $12 billion in debt. However, it is reported that due to the further delay in agreeing to restructure the debt with the international bond holders, there may be obstacles in getting the remaining loan installments of the International Monetary Fund.
The government said in a statement that some of the proposal’s “basic” assessments and the lack of an emergency option in the face of continued economic weakness were the two main reasons for not agreeing to the creditors proposals.
Sri Lanka has already struck a deal with its main government creditors, but an agreement with bondholders in principle is needed to get IMF board approval for the next $337 million tranche of its $2.9 billion program next month.