• Central Bank Chiefs and Finance Ministers to converge on India from today

The Government is hopeful of positive developments for countries in debt distress, including Sri Lanka, at the Group of 20 (G20) countries summit which commences today (22), with the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting scheduled for 24 and 25 February in Bengaluru, Karnataka.

Speaking to The Daily Morning, State Minister of Finance Shehan Semasinghe said yesterday (21): “A lot of things will be decided at the G20 meeting in India. They will discuss debtor countries, and we are expecting a positive result for countries that are now facing an economic crisis, including Sri Lanka. There will be discussions taking place when the International Monetary Fund (IMF) and the member countries meet there. That will be a critical meeting for all the lower-income countries. The IMF will also discuss the financial matters there, which will be a very important meeting.”

The G20 Finance Ministers and Central Bank Governors will discuss debt-related troubles in developing economies, cryptocurrencies, and global inflationary pressures at a meeting later this week, Reuters reported quoting Indian officials.

Unblocking debt restructuring for distressed economies is expected to take prominence at the meeting, where US Treasury Secretary Janet Yellen is also expected to press China to “quickly deliver” on debt relief for low and middle-income countries.

India’s Presidency of the Bloc comes at a time when neighbouring South Asian countries, including Sri Lanka, Bangladesh, and Pakistan, have sought a bailout from the IMF over the past year due to an economic slowdown caused by the Covid-19 pandemic and the Russia-Ukraine war.

Reuters reported last week that India is drafting a proposal for G20 countries to help debtor nations by asking lenders, including China, the world’s largest sovereign creditor, to take a large haircut on loans.