Sri Lanka’s central bank governor, Dr Nandalal Weerasinghe, has reportedly said that the country will be able to reach debt sustainability without restructuring domestic debt. The comments come after President Ranil Wickremesinghe had hinted that financial advisors were “looking at” domestic debt restructuring.
“What the President said was that the financial advisors are looking at the scenarios of any restructuring process. But the government position remains that we intend to restructure the external part, “said the Governor of the Central Bank on Thursday (18), citing a balance of payment and forex crisis.
He said that Sri Lanka needs more time to settle its external debt.
“If we restructure domestic debt, that will have serious implications for the domestic financial sector, including the banking sector,” he has said.
The Central Bank Governor said Sri Lanka needs to minimise the impact of domestic debt so that the country can maintain financial stability and the economy can recover faster.
