Sri Lanka seeks $17 billion debt reduction by restructuring

By KRISHAN FRANCIS
Associated Press

COLOMBO, Sri Lanka (AP) — Sri Lanka’s president has asked its parliament to approve a four-year International Monetary Fund program to restructure the country’s $17 billion in foreign debt. Lawmakers began a three-day debate Wednesday on President Ranil Wickremesinghe’s proposal to accept the IMF program. If approved, it would dictate how Sri Lanka’s crisis-stricken economy will be managed in the coming few years. A majority of lawmakers are expected to accept the IMF’s four-year bailout program. Under the plan, the IMF will provide nearly $3 billion in stages. Wickremesinghe said negotiations on restructuring Sri Lanka’s foreign debt will be held with neighboring India and the Paris Club, a group of major creditor nations on one platform, and separately with China.