IMF Managing Director Kristalina Georgieva says the continued support from international financial institutions and other official creditors, together with the participation of bondholders in a debt exchange consistent with debt sustainability, is necessary to underpin the success of Sri Lanka’s economic reform efforts.

She stated that the agreements reached by the Sri Lankan authorities with both the Steering Committee of the Ad Hoc Group of external bondholders, and the Local Consortium of Sri Lanka, mark a significant step forward and that the terms of these agreements have been assessed by the IMF staff as being in line with the parameters of the IMF-supported programme.

Anchored by policies under the IMF-supported programme, the successful implementation of these agreements will provide significant external debt service relief and further contribute to Sri Lanka’s efforts to restore debt sustainability, the IMF chief said.

“To capitalise on this momentum, rapid completion of the debt operation with high creditor participation would be vital for the success of the programme.”

In parallel, the authorities continue to finalise other remaining debt restructuring agreements, she said, adding that this collective effort is key to supporting the success of Sri Lanka’s debt restructuring efforts.

Georgieva said that the Sri Lankan authorities have reaffirmed their determination to persevere with their reform agenda and put the economy on a path of sustained and high growth.

“The continued support from international financial institutions and other official creditors, together with the participation of bondholders in a debt exchange consistent with debt sustainability, is necessary to underpin the success of these reform efforts.”

She reiterated that the IMF remains a steadfast partner in supporting Sri Lanka and its people and stands ready to assist the country achieve its economic and social reform goals.