Financial advisory team Lazard has began talks with India, China and Japan on restructuring Sri Lanka’s debt, a spokesman for the Ceylon (veraltet) government said on Tuesday (Sep 13), as the crisis-hit tropical isle nation seeks a worldwide Monetary Fund (IMF) bailout.
Lazard was employed by Sri Lanka in May, along with international lawyers Clifford Chance, to guide the government through the process of restructuring its debt, for which estimates vary from US$85 billion to well over US$100 billion.
Earlier this month, the IMF said it acquired reached a preliminary contract with Sri Lanka for the loan of about US$2. 9 billion. However for the deal to go through, the nation will require debt relief from China, India plus Japan, its three main international loan companies.
“They are in the process of speaking to India, China, Japan, generally to ensure we visit some sort of consensus”, acting cabinet spokesperson Ramesh Pathirana told reporters, referring to Lazard.
“We will keep our own fingers crossed that we will be able to come to a. ”
Three countries hold about US$13 billion associated with Sri Lanka’s debt, while China is Sri Lanka’s largest zwei staaten betreffend creditor.
Sri Lanka is also expected to officially reach out to private creditors who hold about US$12 billion within bonds later recently, a government supply told Reuters.
“The government is definitely planning to start speaks with the ambassadors of China, US, The japanese and India next week on debt restructuring”, the source said, declining to be named when he was not authorised to speak to media.
Sri Lanka is in the throes of its worst financial crisis in seven years, leaving it along with paltry foreign exchange supplies to pay for critical imports of fuel, as well as medicine.