Paris Club to Give Sri Lanka Financing Assurances Amid IMF Debt Talks

The Paris Club of creditor nations is ready to provide financing assurances to Sri Lanka, a key step needed to unlock a $2.9 billion bailout by the International Monetary Fund (IMF), two sources with direct knowledge of the matter told Reuters. The informal group of bilateral lenders is set to announce its support to the crisis-hit nation on a debt overhaul "soon", said one of the sources, who asked not to be named because the talks are private. The Asian island nation, which is grappling with soaring inflation, a recession and currency depreciation, entered into a staff level agreement with the IMF last September. But it needs financing assurances from key bilateral lenders before the fund's executive board approves the programme. Sri Lanka's public debt stood at 122% of GDP, of which 60% is denominated in foreign currency, according to data in a country presentation to investors in November. Read more.