Sri Lanka’s debt restructuring should be ‘equal for all’ – Ali Sabry
04-May-2023Minister of Foreign Affairs Ali Sabry has spoken on Sri Lanka’s debt restructuring process, stating that encouraging signs have been seen thus far, although Sri Lanka is not ‘completely out of the woods’.
Minister of Foreign Affairs Ali Sabry has spoken on Sri Lanka’s debt restructuring process, stating that encouraging signs have been seen thus far, although Sri Lanka is not ‘completely out of the woods’.
In an interview with Channel News Asia (CNA), the Minister said that there is a glimmer of hope for us, but we are not out of the woods when inquired as to where Sri Lanka’s optimism pertaining to economic recovery is coming from, despite the Asian Development Bank (ADB) predicting that things will get worse later this year, before seeing gradual improvement in 2024.
Speaking on the debt restructuring process as a whole, Sabry emphasised that the process should be one that is equal for all, with ‘a universal application of debt relief’.
He further highlighted the benefits of debt restructuring, adding that without it, Sri Lanka’s debts will no longer be sustainable, which will ultimately affect both investors and creditors as no proper investment will be made against such a backdrop.
Therefore, he emphasised that the longer the restructuring process takes, the more adverse the impact will be on the investors.
“The national transmission system as well as the distribution systems are being broken up into separate companies. The power to purchase electricity is also transferred to another company”, he charged.
