Colombo 7th September : The US has stepped forward to aid in the to facilitate the restructuring of Sri Lanka’s debt the President Ranil Wickremesinghe’s Office announced on Wednesday. “Secretary of the Treasury, Janet Yellen, has informed that the US as a creditor nation will take part in the restructuring of the debt of Sri Lanka.
The need for complete collaboration of all creditors in discussions on restructuring and debt negotiation through timely participation and equally burden sharing have been highlighted,” the President’s Office stated in an announcement.
In a message addressed to Wickremesinghe Yellen has endorsed his idea for an Inter-Partnership Platform that would be a formal creditor for Sri Lanka’s bilateral lenders, while the US Treasury has urged engagement in the process.
President Wickremesinghe’s Office has also stated that, in addition to sharing the aim with Sri Lanka of expediting financing assurances The US has expressed its readiness to join with other Paris Club members in this process, in keeping with its principles.Additionally, the US Treasury has pledged to continue to work with different government agencies such as the World Bank and Asian Development Bank to aid those living in the country of Sri Lanka, it said.
The US has helped Sri Lanka by providing school nutrition for children as well as food vouchers for pregnancies women and mothers-to-be, as well as cash transfers and fertiliser for small and medium-sized farmers to increase their production of food.
The US Department of Treasury has been pleased with the Sri Lankan government’s decision, to seek International Monetary Fund (IMF) assistance through an Extended Fund Facility (EFF) and, consequently, the recently signed Staff level agreement.
In the midst of its most severe financial turmoil, Sri Lanka last week signed the $2.9 billion loan agreement with the IMF to help restore of financial stability.The loan is expected to be available within four years the loan will be provided as the IMF’s EFF which will assist countries to deal with the balance of payments issues.However, Sri Lanka has to follow strict guidelines, including raising taxes and enforce strict anti-corruption measures.
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