Sri Lanka has earmarked a substantial Rs. 3000 billion for the execution of foreign debt restructuring and the settlement of international sovereign bonds within the foreign debt restructuring program.
President Ranil Wickremesinghe, presenting the 2024 Budget in Parliament, emphasized the reduction of Sri Lanka's net debt to its present value through the restructuring of International Sovereign Bonds.
He proposed the issuance of USD-denominated new financial instruments to settle existing international sovereign bonds, allocating Rs. 3,000 billion for this purpose.
Wickremesinghe highlighted that the debt restructuring process created space for the government to allocate resources for relief measures.
Additionally, he noted that, supported by the International Monetary Fund, Sri Lanka aims to reduce its public debt as a percentage of GDP from 128 percent in 2022 to 95 percent in 2032.