Sri Lanka's $1 bn debt restructured by IMF
ECONOMY & POLICY

Sri Lanka's $1 bn debt restructured by IMF

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.

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.

Next Story
Infrastructure Urban

Macrotech acquires Bain Capital's stake in 3 entities for Rs 3 Bn

Realty firm Macrotech Developers has acquired Bain Capital's stake in three industrial and logistics park entities for Rs 3.07 billion as part of a strategy to enhance rental income. Macrotech Developers is one of the leading real estate firms in the country. It sells properties under Lodha brand. In a regulatory filing, the company informed that it has "executed Securities Purchase Agreements (SPAs) with India Opportunities Fund SSA Scheme 1 and DSS Opportunities Investment 1 (Bain Capital) for acquisition of their interest in the digital infrastructure platform entities (Bellissimo Digital I..

Next Story
Infrastructure Urban

Tata Steel reports Rs 7.59 Bn net profit in Jul-Sep

Tata Steel reported a net profit of Rs 7.58 billion for the September 2024 quarter, helped by lower expenses. It had posted a net loss of Rs 65.11 billion in the July-September period of the preceding 2023-24 fiscal, the company said in an exchange filing. In a separate statement, Tata Steel CEO and MD TV Narendran said the global operating environment remained complex, with key regions facing subdued growth. Macroeconomic conditions in China continued to weigh on commodity prices, including steel. In India, steel demand continued to improve, but domestic prices were under pressure due to chea..

Next Story
Infrastructure Urban

SC to verdict on Nov 7 on plea against NCLAT

The Supreme Court is scheduled to pronounce its verdict on a plea of State Bank of India (SBI) and other creditors challenging the National Company Law Appellate Tribunal (NCLAT) decision that upheld the resolution plan of grounded air carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC). A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra will pronounce the verdict which was reserved on October 16. The NCLAT had on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownersh..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000