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.
Northern Breeze 