Sri Lanka’s banking sector has sought more clarity and transparency from the government on the recently proposed domestic debt restructuring plans without causing a further escalation of the economic crisis in the country. Having obtained a $ 3 billion facility from the IMF, cash-strapped Sri Lanka is currently negotiating debt restructuring with bilateral and multilateral creditors and is expected to make an announcement on the restructuring of both domestic and external debt.
In a statement, the Sri Lanka Banks’ Association, representing all the licensed banks in the country and underpins all sectors of the economy, called out the government’s lack of transparency in the debt structuring process. “The management of this process, including priorities of the GoSL (Government of Sri Lanka) through their agents, the IMF expectations and all public debt holders is admittedly difficult given the diversity of interests,” the statement said on Monday. “However, the lack of transparency in the negotiations with the SLBA member bank consortium is unhelpful,” it added, according to the Economy Next news outlet. “It must be borne in mind always that the banking sector will have to play an active role in Sri Lanka’s economic revival process,” the statement said.
In a statement, the Sri Lanka Banks’ Association, representing all the licensed banks in the country and underpins all sectors of the economy, called out the government’s lack of transparency in the debt structuring process. “The management of this process, including priorities of the GoSL (Government of Sri Lanka) through their agents, the IMF expectations and all public debt holders is admittedly difficult given the diversity of interests,” the statement said on Monday. “However, the lack of transparency in the negotiations with the SLBA member bank consortium is unhelpful,” it added, according to the Economy Next news outlet. “It must be borne in mind always that the banking sector will have to play an active role in Sri Lanka’s economic revival process,” the statement said.