Sri Lanka hopes to shed bankruptcy status by September

economictimes.indiatimes.com:

Ranil Wickremesinghe has expressed hope that the country will be able to shed its bankruptcy status by September and boost its economy. Wickremesinghe’s remark came in the backdrop of Lanka's parliament approving a domestic debt restructuring plan on Saturday that is crucial to continue a $2.9 billion bailout from the International Monetary Fund (IMF). The plan was passed with a majority of 122 votes in the 225-member parliament.

“I hope that by September Sri Lanka will be able to shed its bankruptcy status,” said Wickremesinghe. “Whether you are Sinhalese, Tamil, Muslim or any other nationality, no one likes to be called bankrupt. If individually you don’t like it, then collectively why do you want to have this tag on you? So let’s get out of it.” Last year, the island nation’s dollar reserves shrank to record lows, pushing it into its worst financial crisis in more than seven decades, triggering mass protests, a foreign debt default and the resignation of its president.

To help Sri Lanka boost its sagging economy, India extended a $4 billion in support. Last Thursday, Lanka unveiled a plan that seeks to rework part of its $42 billion domestic debt. «This debt restructuring plan is essential for Sri Lanka to meet the target set by the IMF agreement to reduce debt from the current 128% of GDP to 95% of GDP by 2023,» the state minister of finance, Shehan Semasinghe, told parliament.