Mizukoshi Hideaki, the Ambassador of Japan to Sri Lanka, underscored the critical importance of debt restructuring in Sri Lanka’s path to economic recovery.
Highlighting the multifaceted nature of Sri Lanka’s economic crisis, which was deemed the most severe since its independence, Ambassador Hideaki emphasized the complexity of the challenges faced by the country.
Sri Lanka’s economic downturn necessitated a comprehensive approach to address its debt sustainability issues. With major creditors like China and India, who are not part of the Paris Club, traditional avenues for debt restructuring proved insufficient.
Recognizing the gravity of the situation, Japan, in collaboration with France and India, took proactive steps to initiate the official Creditors Committee.
The involvement of Japan in facilitating negotiations and spearheading efforts culminated in an agreement in principle reached last November.
Ambassador Hideaki reiterated Japan’s commitment to supporting Sri Lanka’s debt restructuring initiatives, emphasizing the potential ramifications of failure on Sri Lanka’s development trajectory and its pivotal role as a hub in the Indian Ocean region, which benefits the broader international community.
(news 1st)
