(MENAFN- Colombo Gazette) tdi_2:not(.td-a-rec-no-translate){transform:translateZ(0)}.tdi_2 tdi_2 img{margin:0 auto 0 0}@media tdi_2{text-align:center}}
Sri Lanka will continue discussions with bondholders with a view to reaching common ground ahead of the IMF board consideration of the second review of Sri Lanka's EFF program, State Minister of Finance Shehan Semasinghe said.
Issuing a statement, Semasinghe said that the Sri Lankan authorities continue to engage all debt restructuring negotiations in good faith, within principles of equitable treatment among creditors, and with maximum transparency within the norms of such negotiations.
It is standard practice, when a representative group of bondholders is formed, to entertain confidential discussions with such group and its appointed advisors. In the case of Sri Lanka, the Ad Hoc Group of Bondholders represents holders controlling more than 50% of the bonds, which make them a privileged interlocutor for Sri Lanka.
It is well understood that given the price sensitive nature of the negotiations, and according to market regulations, discussions with the Group and its advisors are to be conducted under non-disclosure agreements. This evidently restricts the ability of the Government to unilaterally report about the substance of the discussions.
The cleansing statement, which was issued on the 16th of April, at the conclusion of this first round of confidential discussions with members of the Group, aims at informing the Sri Lankan people, market participants and other stakeholders to this debt restructuring exercise, about the progress in negotiations. It provides the highest possible level of transparency within the internationally accepted practices in such circumstances.
“As informed in this statement, confidential discussions held in recent weeks with bondholders' representatives proved constructive, building on the restructuring proposals presented by both parties. During the talks both sides successfully bridged a number of technical issues enabling important progress to be made. Sri Lanka articulated key remaining concerns that need to be addressed in a satisfactory manner,” the State Minister said.
The next steps would entail further consultation with the IMF staff regarding assessments of the compatibility of the latest proposals with program parameters.
Following these consultations, the State Minister said they hope to continue discussions with the bondholders with a view to reaching common ground ahead of the IMF board consideration of the second review of Sri Lanka's EFF program.
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