The Sri Lankan government has reassured the international bondholders and investors that the country’s economic recovery remains on track despite global uncertainties triggered by escalating tensions in the Middle East.

 

As per media reports, Treasury officials told investors that Sri Lanka’s debt outlook has improved following the completion of its external debt restructuring, including agreements covering International Sovereign Bonds.

 

Authorities said fiscal reforms carried out under the programme supported by the International Monetary Fund have helped stabilise the economy and place public debt on a more sustainable path. It is notable that India came to the rescue of the island with an unprecedented 4.5 billion USD assistance package in 2022.

 

Sri Lanka’s economy had collapsed during 2022, when a severe foreign exchange shortage triggered fuel and food shortages and forced the country to default on its external debt for the first time in its history.