President Ranil Wickremesinghe Calls for Urgent Debt Restructuring and Comprehensive Approach to Support Middle-Income Nations

President Ranil Wickremesinghe participating in a high-level panel discussion at the Global Leaders’ Summit for a New Global Financing Pact, in Paris, discussed the country’s experience with debt restructuring and the need for a comprehensive approach to address the challenges faced by middle-income nations.

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He said Sri Lanka faced limited access to financing and took ownership of its debt and economic restructuring program. The president emphasized the need for timely and automatic access to concessional financing and highlighted the high costs incurred during the process. He also called for improved interaction between creditors and debtors and suggests a new approach to address geopolitical issues. President Wickremesinghe emphasized the urgency of restructuring to avoid instability and advocated for a separate process for middle-income countries to address their unique challenges.

He expresses gratitude for the IMF’s intervention and Sri Lanka’s coordination, which allowed dealing with both creditor groups. Ongoing negotiations with Japan, India, and China regarding trade integration and development programs also aided the process.

However, President Wickremesinghe highlights the need for improved interaction between the committee and debtors during the restructuring process, suggesting that a new approach is necessary.

Following is an excerpt of the question posed by the Moderator First Deputy Prime Minister of Spain Nadia Calvino at the panel discussion and the response by President Wickremesinghe.

Q. So President Wickremesinghe, you are in a somewhat special situation. We move now into a middle-income country. The coordination challenges are maybe, greater in the sense that you are not subject to the common framework, which is heard that it was an important instrument in the case of Chad. The official creditor committee has been formed with Paris Club and non-Paris Club members and we understand that India’s decision to participate and co-chair these creditors gathering