Daily Mirror (Sri Lanka)

Leading asset manager highlights why SL should avoid debt restructur­ing

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A leading asset manager in the country yesterday urged the authoritie­s to avoid a debt restrictin­g exercise, which is being advocated by several economists as the only solution to the country’s debt problem exacerbate­d by a foreign exchange crisis.

Ceylon Asset Management Managing Director Dulindra Fernando says if Sri Lanka opts for a debt restructur­ing exercise, it will “tarnish Sri Lanka’s impeccable credit record since independen­ce and damage its brand in foreign capital markets”.

“Despite doomsday forecasts by some economists advocating a debt restructur­e, Sri Lanka has several options and combinatio­ns of strategies to consider in order to bridge the gap,” he said.

He also says a competitiv­ely valued currency will help win the confidence of foreign funding agencies and if Sri Lanka decides to seek the assistance of the Internatio­nal Monetary Fund, the government should reach an agreement with the multilater­al lender that does not involve a debt restructur­e to regain the confidence of foreign investors.

Please read the full op-ed on Page 9.

 ?? ?? Dulindra Fernando
Dulindra Fernando

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