To allow central bank and treasury officials to provide clarifications requested by the nation's creditors, Sri Lanka has postponed a round of debt restructuring talks that were initially scheduled to take place on Thursday, according to its state minister of finance.
After negotiating a preliminary $2.9 billion bailout with the International Monetary Fund, the island nation formally began the negotiations in September. This was a step toward resolving the nation's worst financial crisis in ten years. But it needs to secure financing assurances from key creditors including China, Japan, and India before the funds can be disbursed.
“There are different concerns that different creditors want cleared so it was decided that these clarifications would be communicated first and then new dates would be set for another round of talks,” state minister Shehan Semasinghe told Reuters on Thursday.
“The dates are yet to be decided.”
Semasinghe did not provide details on the creditors’ concerns or what exactly was being discussed between them and Sri Lanka’s central bank and treasury officials.
Sri Lanka had earlier set a target of getting board-level IMF approval in December for the planned four-year program.
After negotiating a preliminary $2.9 billion bailout with the International Monetary Fund, the island nation formally began the negotiations in September. This was a step toward resolving the nation's worst financial crisis in ten years. But it needs to secure financing assurances from key creditors including China, Japan, and India before the funds can be disbursed.
“There are different concerns that different creditors want cleared so it was decided that these clarifications would be communicated first and then new dates would be set for another round of talks,” state minister Shehan Semasinghe told Reuters on Thursday.
“The dates are yet to be decided.”
Semasinghe did not provide details on the creditors’ concerns or what exactly was being discussed between them and Sri Lanka’s central bank and treasury officials.
Sri Lanka had earlier set a target of getting board-level IMF approval in December for the planned four-year program.