By 
Sri Lanka is on the verge of finalizing a debt treatment plan in collaboration with India and the Paris Club, according to sources cited by The Hindu.
The proposed plan is expected to include a moratorium of up to six years and a reduced interest rate during the repayment period.
The Colombo-based source, speaking to The Hindu, emphasized the negotiations have reached an advanced stage, and formal agreement terms are anticipated imminently.
As many as 17 countries that have extended loans to Sri Lanka formed the Committee last year for ease of debt restructuring negotiations.
Notably, China has chosen not to participate directly in the OCC platform but has been attending meetings as an observer.
Meanwhile, Colombo has consistently assured the OCC that it will engage in negotiations for the repayment of Chinese loans on terms comparable to those agreed upon with other creditors, reported The Hindu.
The International Monetary Fund (IMF) expressed cautious optimism about Sri Lanka’s debt restructuring efforts, highlighting agreements reached with key creditors.
However, the IMF urged Sri Lankan authorities to expedite the finalization of these agreements for a swifter path towards debt sustainability.
(News First )
