Paris Club statement on Sri Lanka

Paris Club members welcome the staff-level agreement (SLA) concluded between Sri Lankan authorities and IMF staff for a 48-month arrangement under the Extended Fund Facility (EFF). This agreement represents an important step to restore macroeconomic stability and public debt sustainability.

We note the IMF’s assessment for the need for a debt treatment in the context of the IMF program. The Paris Club is ready to start the debt treatment process and reiterates its willingness to coordinate with non-Paris Club official bilateral creditors to provide the necessary financing assurances in a timely manner and ensure fair burden sharing, as already proposed to the largest other official bilateral creditors.

The Paris Club remains at the disposal of Sri Lankan authorities and non-Paris Club official bilateral creditors to further discuss the next steps of the debt treatment process.

 
Background notes

The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.