The government’s macroeconomic policy reforms are starting to bear fruit. Commendable outcomes include rapid disinflation, robust reserve accumulation, and initial signs of economic growth while preserving the stability of the financial system, the official added.

Sri Lanka will be bringing its debt service levels to below 30 percent of revenue. Public finances have strengthened following substantial fiscal reforms, and it is critical that this reform momentum be continued.

The debt deals being negotiated with a group of bondholders’ steering committee have not been provided with real debt cancellations or actual write-offs of debt stock, a former Finance Ministry official said