To repay US$ 36 billion foreign debt :
Two renowned agencies to assist creditors:
The government has formulated a three-pronged concessional debt restructuring package to repay the US$ 36 billion foreign debt, which has not been paid at the moment.
Transport, Highways and Mass Media Minister Dr. Bandula Gunawardhana said that it is planned to implement this three-pronged package for 5-6 years, 6-20 years and beyond 20 years.
The Government of Sri Lanka was working to obtain a grace period for the repayment of these loans with the support of foreign creditors in the recent past.
Several rounds of negotiations have been successfully held so far to reach an agreement to obtain the grace period. If those agreements can be obtained, the government will have to repay 37 percent of the foreign debt within 5 to 6 years.
It is planned to repay 51 percent of loans within the next 6-20 years and the remaining 12 percent of the loan amount will be paid off beyond 20 years. Two world-renowned expert consulting firms were working on behalf of the Sri Lankan government to prepare a three-pronged concessional debt restructuring package for loan repayment.
The Minister also said that Clifford Chance Company has been chosen to postpone the repayment of the debt by discussing with the foreign creditors and Lazard Company has been chosen to assist the Sri Lankan Government in legal matters by discussing with the creditors.The Minister further emphasized that no matter who comes to power, no matter who the President is, debt should be repaid according to these agreements.
