Paris Club will impact positively on Sri Lanka’s debt restructuring with India and China!

Paris Club is an informal group of creditor nations whose objective is to find workable solutions to payment problems faced by debtor nations.

The Paris Club has proposed a 10-year grace period for Sri Lanka to repay its debt and the government will be given the legal right to defer Sri Lanka’s debts.

The Paris Club has further proposed a 15-year debt restructuring plan as a formula to resolve Sri Lanka’s current financial crisis.

In this sinario the Paris Club’s proposal will have a direct impact on the ongoing discussions on debt restructuring with India and China, who are Sri Lanka’s main creditors.