Samantha Power, Administrator of the United States Agency for International Development (USAID), says it is critical that all of Sri Lanka’s creditors, particularly the People’s Republic of China, cooperate in the debt restructuring process openly and on comparable terms.
She stated that as Sri Lanka seeks to recover from its economic crisis, the United States, as a creditor and member of the Paris Club, stands ready to participate in the restructuring of the country’s debt.
“When debt becomes unsustainable, as it so clearly has in Sri Lanka, the stakes of that cooperation can mean the difference between life and death, prosperity or poverty,” the former US Ambassador to the UN told reporters on Sunday in Colombo (11).
She also stated that it is critical to change the habits that led to the accumulation of such debt in the first place, rather than just restructuring debt.
“As Sri Lanka’s largest export market, I believe we have a unique perspective on the value of everything the country has to offer: the value of Sri Lankan industry, the value of apparel, the value of its burgeoning technology sector, and its burgeoning renewable energy efforts. So, I believe it is critical not only to get through this crisis, and this is, of course, consistent with the recent staff level agreement with the IMF, but also to lay a much more stable foundation for responsible borrowing, responsible balance of trade, and productive balance of trade going forward “She continued.
Administrator Samantha Power also stated that Sri Lanka’s thriving civil society must be given the space they require to speak out and hold the government accountable.
“This has nothing to do with economic stability. It is the means by which the government will learn what works and what does not work at the grassroots level. International investor confidence will rise as the government combats corruption and implements long-awaited governance reforms. As citizens see the government follow through on its commitment to effect meaningful change, societal support for the difficult economic reforms that lie ahead will grow “She made a remark.
