Sri Lanka needs a credible policy framework on debt sustainability – Dr Dushni Weerakoon
25 September 2021
Sri Lanka needs a credible policy framework to build confidence in its fiscal and debt sustainability plans, Dr Dushni Weerakoon IPS’ Executive Director said at a discussion on ‘Sri Lanka’s Debt Sustainability: The Current Challenges’. She noted that Sri Lanka’s current debt metrics, with high exposure to foreign debt and International Sovereign Bonds makes any debt restructuring efforts a complex task. She pointed out that there is no global framework for coordinated action at present for middle-income countries to bring together multilateral, bilateral and private creditors. Thus, as a first step, Sri Lanka needs a credible and publicised plan to build confidence on how it will meet its debt obligations.
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