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Sri Lanka to recommence halted project says State Finance Minister

Sri Lanka to recommence halted project says State Finance Minister

The Morning: Sri Lanka’s projects that have been halted due to the economic crisis are to be recommenced once the second tranche of the Extended Fund Facility (EFF) under the International Monetary Fund (IMF) is received. Speaking in Parliament, State Minister of Finance Shehan Semasinghe made these remarks on 30 November.
State Minister Semasinghe said: “We received a remarkable decision made by Sri Lanka’s Official Creditor Committee (OCC), as it has been discussed, expressing their agreement in debt restructuring. Therefore, we (the Government of Sri Lanka) express our gratitude to the creditor nations, which consist of 17 countries, and whose chairmanship was held by France, Japan, and India.”
He added that in April this year, the OCC was launched to fasten the debt restructuring process in Sri Lanka, along with creditors. Although China did not hold official membership, it provided the support that was needed. Thus, the OCC, including all member countries from the Paris Club, have expressed their agreement.
Thus, Semasinghe said, the Government anticipates that the Executive Committee of the IMF would green-light the grant of the second tranche in order to further stabilize the economy of the country, while observing that economic growth could be expected in 2024.
The state minister noted that discussions with the private creditors are also to be continued. He opined that President Ranil Wickremesinghe’s leadership has assisted this cause by ensuring that a fair and transparent methodology is carried out, while the Ministry of Finance and the Central Bank of Sri Lanka (CBSL) also equally contributed in making this a success.

OSL take:
With Sri Lanka’s economy getting back on track after facing external and internal challenges through the years, the government of Sri Lanka is now looking at restarting the country’s halted development programmed. Sri Lanka’s economic resilience and the progress made in moving out of the economic crisis have all given confidence to multilateral donors to resume the funding for development projects. The finalizing of the country’s debt restructuring programmed with creditors have also helped Sri Lanka resume its development programmed. Sri Lanka’s development programmed has also opened up a host of new business/investment opportunities. There are also more opportunities in the development of supplementary infrastructure facilities required by Sri Lanka’s growing economic activities. Sri Lanka working towards becoming an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed with other countries, foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka.

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Article Code : VBS/AT/20231205/Z_4

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