Thursday, 26 March 2020 08:38

President appeals to donor agencies to grant debt moratorium for Covid-19 hit nations

Sri Lanka has requested international donor agencies to provide a debt moratorium or debt deferment facility to all vulnerable developing nations.


President Gotabaya Rajapaksa has made this request as developing nations including Sri Lanka are grappling to service debt running up to billions of US dollars amidst the corona virus risk.

President had urged Director General of the World Health Organisation to forward this request to multi-lateral and bilateral lending agencies President’s Media Division revealed. .

President has pointed out this relief would be helpful to manage COVID-19 Social Distancing, Public Health and Social Security Systems in those countries, PMD said.

According to Central Bank, Sri Lanka will have to repay $ 4.8 billion this year and it has sufficient foreign reserves to meet most of the payments under the medium term debt management strategy.

The next large $1 billion sovereign bond repayment is only due in October 2020, CB data showed.

The Government has negotiated a loan from the Chinese Development Bank, which was between $ 1-2 billion, Senior Deputy Governor Dr.Nandalal Weerasinghe announced in January and the country has already received $500 million.

CDB is considering the releasing another sum of $ 700 million within the next two months, official sources said.

The Government has earlier requested a three-year moratorium on all loan repayments from India in order to revive the economy.

 

(LI)

 

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