නිදහස් හා විවෘත ප්රවේශය
රාජ්ය මූල්ය දත්ත හා විශ්ලේෂණයන් සඳහා
Economists warn that Sri Lanka's failure to reach a restructuring agreement with its bondholders by the set deadline could severely hinder the nation's recovery efforts. With over US$12 billion in outstanding bonds and accumulating arrears, delays in finalizing agreements exacerbate the situation, constraining foreign borrowing and deterring foreign investments. Advocata Institute Chair Murtaza Jafferjee stresses the importance of settling promptly to avoid prolonged default, urging the government to stand firm in negotiations to meet IMF requirements. Economist Talal Rafi echoes concerns, emphasizing the impact on investor confidence and the impending IMF review and presidential election.
Verité Research Lead Economist Raj Prabu Rajakulendran introduces a novel 'Governance Linked Bond' proposal, aimed at aligning the interests of the government and bondholders through incentives tied to governance reforms and macroeconomic stability. If adopted, this innovative approach could expedite debt restructuring, bridging the gap between bondholder proposals and Sri Lanka's objectives.
Read the Verité Research Proposal for a Governance-Linked Bond in Restructuring Sri Lanka’s Debt
