Sri Lanka’s central bank unveiled a far-reaching debt restructuring plan on Thursday aimed at restoring stability after an unprecedented economic crisis last year that led to the toppling of then-presidentGotabaya Rajapaksa.<\/p>\n
The move comes after Colombo cut subsidies, doubled taxes and promised to privatise hundreds of state enterprises under a $2.9 billionIMF bailoutagreed in March.<\/p>\n
That agreement requires Sri Lanka to reduce its debt servicing by two-thirds in the next four years to balance its books and restore the bankrupt island nation’s finances.<\/p>\n
Bilateral lenders were spared but will be asked to extend the maturity of their loans up to 15 years at an annual fixed interest rate of 1.5 percent, with a nine-year moratorium on interest payments.<\/p>\n","protected":false},"excerpt":{"rendered":"