COLOMBO (Reuters) – Sri Lanka’s cabinet approved a domestic debt restructuring programme at a special cabinet meeting on Wednesday, a source at the president’s office told Reuters.
Pledging to put its mammoth debt burden on a sustainable track, Sri Lanka locked down a $2.9 billion bailout from the IMF in March, which has helped it recover from the country’s worst financial crisis in more than seven decades.
“Cabinet approved the domestic debt restructuring programme,” a source at the president’s office told Reuters.
The office said earlier in the day an official statement will be made on Thursday morning.
The domestic debt restructure is needed to help the country reach the IMF programme goal of reducing overall debt to 95% of GDP by 2032.
(Reporting by Uditha Jayasinghe; Writing by Tanvi Mehta; Editing by Shivam Patel and Andrew Heavens)
