COLOMBO (News 1st); Sri Lanka’s sovereign debt restructuring process is almost complete, marking a significant milestone in the country’s economic recovery.
According to an IMF Working Paper titled “Sri Lanka’s Sovereign Debt Restructuring: Lessons from Complex Processes” by Peter Breuer, Sandesh Dhungana, and Mike Li, the restructuring has helped normalize domestic financing conditions and stabilize the economy.
However, the IMF cautions that restructuring alone is not enough to ensure long-term debt sustainability.
The paper stresses the need for continued fiscal discipline, prudent macroeconomic policies, and stronger institutions under and beyond the current Extended Fund Facility (EFF) arrangement.
“There is no room for…