Sri Lanka mulls hiring a global law firm to aid debt restructuring
Finance minister Basil Rajapaksa is expected to visit Washington next month to have talks with IMF
By : Legal Era
Update: 2022-03-25 07:30 GMT
Sri Lanka mulls hiring a global law firm to aid debt restructuring
Finance minister Basil Rajapaksa is expected to visit Washington next month to have talks with IMF
Ahead of the talks with International Monetary Fund (IMF) on the country's economic crisis, Sri Lanka is considering hiring a global law firm to provide technical assistance on debt restructuring.
(IMF is an organization of 190 countries, working to foster global monetary co-operation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty around the world).
The island's currency reserves have slumped 70 percent in the last two years to $2.31 billion. It has to repay about $4 billion in debt by this year-end.
According to the government spokesperson Ramesh Pathirana, Sri Lanka's cabinet took the decision to appoint a technical adviser. He further informed that the selection process would be overseen by the central bank governor and foreign and justice ministers.
The drain of its dollars has left Sri Lanka struggling to pay for critical imports, including food, fuel and medicine. Meanwhile, the government recently ordered the military to post soldiers at hundreds of gas stations to help distribute fuel.