But a significant challenge remains in managing the country’s large sovereign debt and inequities of the partial coverage of the domestic debt optimisation program. Early restructuring of external debt will enable the Government to promptly re-establish its presence in the international debt market. Issuance of long-term LKR bonds will not impact short term cash flows of the Government. Pari-passu for all ISB holders will make the issue transparent and acceptable to all parties. Converting ISB holders’ investments to LKR via a restricted IIA, eliminates possibility of immediate disposal by foreign shareholders in the local market.

Source: The Hindu February 12, 2024 18:47 UTC