New Delhi: The plan to restructure Sri Lanka’s debt could be completed by June, two people aware of the matter said, as the island-nation prepared to reach an agreement with its creditors in the coming months.
“We expect that the agreements will be finalized around June, which will help settle the debt restructuring process with Sri Lanka,” said one of the officials mentioned above, requesting anonymity.
In May 2022, India’s southern neighbour defaulted on its overseas debt after its worst financial crisis since independence in 1948 emptied out foreign exchange reserves.
In March 2023, Sri Lanka secured a four-year $2.9 billion bailout package from the International Monetary Fund (IMF), subject to the country ensuring debt sustainability in line with agreed targets.
Sri Lanka has also negotiated a preliminary deal to restructure about $10 billion of debt…