SRI LANKA TO SAVE $5 BILLION AFTER DEBT RESTRUCTURE: KEY HIGHLIGHTS

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By: Mansoor Ali ( Admin)

Economic Forecast

The central bank predicts a 3% economic expansion in 2024, following a 2.3% contraction in 2023

Debt Burden Reduction

The entire debt restructuring process aims to reduce Sri Lanka's debt burden by $16.9 billion

Massive Savings

Sri Lanka will save $5 billion in interest payments through bilateral debt restructuring.

Debt Agreements

Deals with China and other creditor nations restructure about $10 billion in bilateral debt

Extended Repayment

The repayment period has been extended by eight years to 2043 with interest rates adjusted to 2.1% or less

Debt Default

The restructuring follows Sri Lanka's first-ever default on foreign debt in September 2022 due to low foreign exchange reserves.

IMF Support

The debt rework is backed by a $2.9 billion IMF program aimed at restoring debt sustainability

China Development Bank

Sri Lanka needs to finalize restructuring of $2.2 billion with China Development Bank