Speaking at an event held by the Ceylon Chamber of Commerce (CCC) on Friday (2), he said that any proposal by the commercial creditors on debt restructuring should be consistent with the debt sustainability targets set out by the IMF as the whole idea of debt restructuring is to restore debt sustainability.

“Any solution that will not restore debt sustainability, I don't think we are going to agree,” he said. He added that Sri Lanka is willing to agree to any solution by commercial creditors that will restore debt sustainability based on the macro framework and projections of the IMF and their projections

Last October (2023), Sri Lanka rejected a proposal by an ad hoc group of bondholders, organised by advisers including Rothschild & Co. which submitted a proposal to Sri Lanka that included taking a 20% haircut and issuance of new debt, including a so-called macro-linked bond.