Sri Lanka’s Parliament open debate on domestic debt restructuring programme

Sri Lanka’s Parliament opened a special session to discuss the proposed domestic debt restructuring (DDR) plan as part of the government’s efforts to revive the bankrupt country’s banking and finance sector.

Sri Lanka's Parliament on July 1 opened a special session to discuss the proposed domestic debt restructuring (DDR) plan as part of the government's efforts to revive the bankrupt country's banking and finance sector.

Domestic debt restructuring (DDR) is a key condition in the International Monetary Fund (IMF) programme, through which a bailout package of $3 billion was approved for Sri Lanka in March.

The IMF programme unlocks more help from international funding agencies. Accordingly, the World Bank, earlier this week, approved $700 million in financing as budgetary and welfare support for Sri Lanka, which is facing its worst economic crisis since it won independence from the British in 1948.

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Sri Lanka's parliamentary oversight committee comprising members from both government and opposition on Friday approved the plan with certain amendments.

The majority of the Committee on Public Finance (COPF) approved the resolution following the second day of deliberations which began on Thursday, an official release said.

The Cabinet approved the debt restructuring plan on Wednesday after which it was referred to the public finance committee in Parliament.