Krishna Srinivasan, director of the International Monetary Fund’s Asia Pacific region, says that establishing debt stability in Sri Lanka is quite a challenge.
It was at a news conference held in Hong Kong for the presentation of the International Monetary Fund’s Asia Pacific Economic Outlook.
Commenting further on this, the Asia Pacific Director of the International Monetary Fund said this idea.
“Inflation has come down from high levels. But we should not forget that inflation is what hits the poor people the hardest. If inflation is to be controlled, it should be done through fiscal policies. Talking about the restructuring, you know that the loan interest rates in Sri Lanka were in an unstable state. That’s why they had to stabilize the program before approving it. The same procedure is included in the debt restructuring of all public and private creditors. Debt stabilization in Sri Lanka is quite challenging. Sri Lanka should ensure that financial stability occurs in the restructuring of domestic debt. These are the challenges that the government is facing now. We will present the strategies in this regard in the next step.