IMF: Sri Lanka can discuss proposals from private creditors including GDP-linked bonds

Krishna Srinivasan

Krishna Srinivasan, Director of the Asia and Pacific Department at the International Monetary Fund, reacts during a news conference at the Sri Lanka’s Central Bank premises, in Colombo, Sri Lanka May 15, 2023. (REUTERS / Dinuka Liyanawatte)

Sri Lanka’s authorities can negotiate any proposals private creditors make, such as issuing GDP-linked bonds, a senior International Monetary Fund (IMF) official said on Friday.

Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, made the comment at a news conference, when asked by a reporter whether issuing GDP-linked bonds was an idea the IMF would allow.

“We don’t get involved in debt restructuring efforts between creditors and debtors,” he said.