Sri Lanka's $1 bn debt restructured by IMF

11 Aug 2023 CW Team

Sri Lanka's financial distress is prompting a comprehensive approach to its debt burden. The International Monetary Fund (IMF) is leading a restructuring program, targeting more than $1 billion in debt owed to India. This debt is a component of India's Line of Credit, which supported Sri Lanka's infrastructure development, encompassing roads, energy, water, and housing projects.

Presently, India's exposure to Sri Lanka amounts to around $3 billion. As part of the restructuring, potential debt "haircuts" for international lenders are being explored, although specific details are yet to be finalised. N. Ramesh, Deputy Managing Director of EXIM Bank of India, stated that various options are being considered, such as reducing principal amounts or extending repayment periods.

The IMF-approved extended arrangement, totaling $3 billion, serves to bolster Sri Lanka's economic policies and reforms over a 48-month period. With Sri Lanka's total foreign debt, including India's, at $41.5 billion, this restructuring initiative is a pivotal step toward stabilising the nation's financial outlook.

India remains committed to assisting Sri Lanka's economic development, particularly in enhancing transportation networks. Despite the challenges, cooperation endures between the two neighbouring countries. As Sri Lanka advances its domestic debt restructuring, the path is being paved for addressing obligations owed to foreign creditors. The completion of this restructuring process is anticipated by September, marking a significant stride toward financial recovery.

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..

Gujarat Pushes Biogas Growth With 193 Operational Units

Gujarat has operationalised 193 biogas plants across the state and is planning to add 60 more units as part of a broader push to scale up clean and sustainable energy solutions. The existing plants, established under various government-supported schemes, process organic waste including cattle dung and agricultural residue to produce biogas and a nutrient-rich slurry. The output is mainly used for cooking and other energy needs in rural and semi-urban communities, while also improving local waste management practices. The Gujarat Energy Development Agency (GEDA) is leading the initiative and is..