COLOMBO: Sri Lanka’s president said on Wednesday that he was seeking a moratorium on foreign debt repayments until 2028, following a government default during the island nation’s unprecedented economic crisis two years ago.
A collapse in foreign exchange reserves saw months of food and fuel shortages along with street protests that forced the ouster of President Ranil Wickremesinghe’s predecessor in 2022.
Sri Lanka has since signed up to an International Monetary Fund rescue package and is working to repair public finances since the government defaulted in April of that year.
Wickremesinghe said talks were still ongoing with both bilateral and private creditors to restructure its billions of dollars in loans and bonds.
“We intend to secure temporary relief of not having to service our debts till the end of December 2027,” Wickremesinghe told lawmakers in parliament.