There is a glimmer of hope for Sri Lanka at present, although it is not completely out of the woods yet, Foreign Minister Ali Sabry said commenting on the nation’s economic recovery process.
In an interview with Channel News Asia (CNA), Minister Sabry said Sri Lanka’s inflation is now under control, tourism has bounced back, and the country’s currency has also stabilised.
He added that while there could be a further recession, some growth may be possible from next year onwards.
The Foreign Minister also expressed gratitude to the various multi-lateral agencies such as the International Monetary Fund (IMF), Asian Development Bank (ADB), and World Bank for helping with the necessary financial assistance.
Speaking on the debt restructuring process as a whole, Minister Sabry emphasised that the process should be one that is equal for all, with ‘a universal application of debt relief’.
He further highlighted the benefits of debt restructuring, adding that without it, Sri Lanka’s debts will no longer be sustainable, which will ultimately affect both investors and creditors as no proper investment will be made against such a backdrop.
Therefore, the Minister emphasised that the longer the restructuring process takes, the more adverse the impact will be on the investors and creditors.
“I know some tough negotiations are around the corner, but so far, the signs are encouraging from our friends, both bilateral and otherwise,” he added. (NewsWire)