The Official Creditor Committee (OCC) of Sri Lanka’s bilateral lenders has commended the country’s efforts in implementing necessary reforms for a sustainable economic future.
The OCC emphasized the importance of receiving all necessary information from Sri Lanka to ensure comparability of treatment. They also urged Sri Lankan authorities to continue engaging with private creditors to reach an agreement on terms as favorable as those offered by the OCC.
“These engagements will ensure that the overall debt treatment granted to Sri Lanka is consistent with the IMF program parameters,” the OCC stated on Wednesday.
The OCC and Sri Lanka had previously agreed on the main parameters of a debt treatment plan consistent with the Extended Fund Facility (EFF) arrangement with the IMF on November 23, 2023. On June 26, 2024, they finalized a Memorandum of Understanding (MoU) based on these parameters.
This progress enabled the IMF staff to present the second review of Sri Lanka’s EFF arrangement to the IMF Executive Board, paving the way for the third disbursement under the arrangement.
The Paris Club, an informal group of official creditors formed in 1956, includes representatives from Australia, Austria, Belgium, Canada, Denmark, France, Germany, Japan, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, and the United States, all of whom are part of the OCC with eligible claims on Sri Lanka.
