During 2020, in order to strengthen debt architecture, the G20 initiated Debt Service Suspension Initiative (DSSI) and established the Common Framework (CF) for debt resolution.

“It is now critical to complete Zambia’s debt restructuring, establish a Creditor Committee for Ghana and advance work with Ethiopia.

Nonetheless, more predictable, timely and orderly processes are needed both for countries under the CF and for those not covered by it, including Sri Lanka and Suriname,”

This was disclosed by IMF Managing Director Kristalina Georgieva in a statement issued after conclusion of G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Bengaluru, under India’s presidency,

Sri Lanka has already fulfilled filled around 15 commitments made to IMF and put forward a debt treatment from work with proposal of immediately restructuring bilateral debt of US, India ,China ,Japan,and Paris club member and non member countries amounting to US$10.81 billion to gain $2.9 billion IMF bail out loan soon.

The G20 Finance Ministers and Central Bank Governors who met in Bengaluru, India from February 24-25, 2023 said that they look forward to a swift resolution to Sri Lanka’s debt situation.

India’s Minister of Finance Nirmala Sitharaman said that they recognize the urgency to address debt vulnerabilities in low and middle-income countries.

World Bank President David Malpass said that Sri Lanka and other middle-income countries were in need of quick debt restructuring.