Paris Club members as well as Hungary, Saudi Arabia and India continue to look forward to working together along with all bilateral creditors and to engage with with other key stakeholders to proceed with a comparable debt restructuring as soon as possible, the statement added.

However Paris Club creditors will have to give their assurances for Sri Lanka debt restructuring in writing indicting its commitments in detail including debt moratorium and hair cut or reduction in capital and interest

Meanwhile Sri Lanka’s bondholders have told the International Monetary Fund (IMF) that they are prepared to engage with the island nation’s authorities in debt restructuring talks consistent with the parameters of the global lender’s program.

The Ad Hoc Group of Sri Lanka Bondholders conveyed its stance in a letter directed to IMF Managing Director Kristalina Georgieva on Friday (Feb. 03).

The Bondholder Group through its Steering Committee stands ready to engage quickly and effectively with the Sri Lankan authorities to design and implement restructuring terms that would help Sri Lanka restore debt sustainability and allow the country to re-gain access to the international capital markets during the IMF Programme period.”

Sri Lanka’s State Finance Minister welcomed the letter sent by the island nation’s sovereign bond holders to the International Monetary Fund (IMF) over their willingness to engage in debt restructuring talks.

“The Sri Lankan government welcomes the letter sent by bondholders to the IMF,” Minister Shehan Semasimghe said in his twitter platform.

“We continue to engage in good faith dialogue with our private creditors to find a solution that will help us achieve debt sustainability and will enable Sri Lanka’s economic recovery.”

Sri Lanka’s bondholders recently wrote to the IMF and expressed their willingness to engage in debt re-structuring talks but also raising matters related to the domestic debt re-structuring and economic assumptions and forecasts.

Named themselves as ‘The Ad Hoc Group of Sri Lanka Bondholders’, the group noted that the finalization of an agreement will be subject to the satisfaction of the certain conditions including the central government’s domestic debt – defined as debt governed by local law – is reorganized in a manner that both ensures debt sustainability and safeguards financial stability.

It also asked the gross domestoc financing to be limited to 8.5 percent of the GDP while keeping the annual gross financing needs not exceeding 13 percent of GDP in the each year between 2027 and 2032 and allowing for central government annual foreign currency debt service to reach 4.5 percent.