Sri Lankan Prime Minister Dinesh Gunawardena is in Beijing, the island's biggest bilateral creditor, seeking a debt restructuring deal crucial to maintaining an IMF bailout programme. Photo: Ishara S. KODIKARA / AFPSri Lanka's central bank cut interest rates Tuesday as the prime minister visited China seeking a debt restructuring deal crucial to maintaining an IMF bailout.
The bank said it would boost"the ongoing revival of economic activity", adding that the country was close to finalising a restructuring of its bilateral loans and international sovereign bonds.Bank Governor Nandalal Weerasinghe said deals with bilateral creditors and bond holders must be completed before June for Sri Lanka to continue with the four-year $2.9 billion International Monetary Fund bailout.
The central bank said the economy had grown since the second half of last year, to contain the overall contraction in 2023 to 2.3 percent.