Presentation to be delivered by Dr. Nishan de Mel of Verité Research at SOAS
A panel discussion titled “Sri Lanka’s economic crisis and beyond”, organised by the School of Oriental and African Studies (SOAS) of the University of London, will be held today (14 May) in London, UK, chaired by Professor Jonathan Goodhand.
The main presentation at the event will be made by Verité Research Executive Director Dr. Nishan de Mel, and the discussant will be Prof. Mushtaq Khan.
The discussion will delve into the root causes of the economic crisis, assess the effectiveness of existing policy initiatives, and explore avenues for nurturing sustainable growth and safeguarding political stability. This session is designed to offer practical insights for addressing similar challenges in other countries, serving as a platform for proposing policies that fortify resilience and assure continuity across political cycles. Through dynamic discussions and knowledge sharing among policymakers, economists, and stakeholders, the aim is to map out a trajectory towards enduring economic stability and resilience.
For instance, in April 2024, an instrument developed by Verité Research known as a “Governance Linked Bond” (GLB), officially entered the debt negotiation discussions, and injected fresh perspectives into debt negotiation methodologies. A GLB operates uniquely by adjusting its coupon rate downward in response to Sri Lanka meeting specific governance targets outlined in the International Monetary Fund (IMF) program.
This mechanism not only provides an incentive for the Sri Lankan Government to enact essential structural reforms by offering a reduction in coupon rates upon success, but also aligns the financial interests of bondholders with the country’s broader macroeconomic stability. Should the GLBs be accepted, Sri Lanka would become the first nation globally to utilise such an innovative instrument in debt restructuring. This pioneering approach transcends borders, presenting a model that could be adopted in debt restructuring negotiations worldwide.
The panel discussion is scheduled from 5.00 p.m. to 7.00 p.m. in London, which will be from 9.30 p.m. to 11.30 p.m. Sri Lankan time tonight. It is available to the public through pre-registration here: www.soas.ac.uk/about/event/sri-lankas-economic-crisis-and-beyond-panel-discussion
Source: DailyFT
