Sri Lanka announces successful completion of OCC and IMF consultation process

The Ministry of Finance stated that Sri Lanka has successfully completed consultations with the Official Creditor Committee (OCC) and the International Monetary Fund (IMF).

“The Democratic Socialist Republic of Sri Lanka is pleased to announce that, following the Agreement in Principle (AIP) reached with representatives of its international and local holders of International Sovereign Bonds (ISBs) on 19th September 2024, the Sri Lankan authorities have now completed their consultations with Sri Lanka’s Official Creditor Committee (OCC) and the IMF regarding the compliance of the AIP terms with the Comparability of Treatment (CoT) principle and the parameters of Sri Lanka’s IMF-supported program,” the Finance Ministry said today (04).

Sri Lanka is pleased to report that formal confirmation has been received from the OCC that the terms of the AIP, as it stands, are compatible with the CoT principle, the statement said.

Concurrently, the authorities have also received confirmation from IMF staff that the AIP terms meet program parameters under the EFF arrangement’s second review macro framework, when considered in conjunction with the restructuring of official claims, in line with the terms agreed with the OCC and China Eximbank in June 2024, it added.

“Following the Presidential elections held in Sri Lanka on Saturday, 21st September, and the appointment of the new government on 25th September, the Sri Lankan authorities confirm their endorsement of the program debt targets and the AIP terms as announced on 19th September and confirm their intention to expedite the implementation of the ISBs’ restructuring transaction in line with these terms,” said the ministry.

Sri Lanka expressed gratitude to all its creditors, as well as the IMF and the OCC, for their good faith engagement and continued support throughout this process.