Finance State Minister Shehan Semasinghe expressed optimism yesterday regarding Sri Lanka's ongoing efforts to engage bondholders in discussions aimed at finding common ground before the IMF board's consideration of the second review of the country's EFF program. In a press release issued by the Finance State Minister, he emphasized the importance of continued dialogue with bondholders and further consultation with IMF staff to ensure alignment with program parameters.

Highlighting the principles guiding Sri Lanka's approach to debt restructuring negotiations, Semasinghe underscored the commitment to equitable treatment among creditors and transparency within the norms of such negotiations. He noted the formation of the Ad-Hoc Group of Bondholders, representing holders controlling over 50% of the bonds, as a key channel for dialogue.

Acknowledging the confidentiality required in negotiations, Semasinghe emphasized the necessity of adhering to non-disclosure agreements due to the sensitive nature of the discussions. He clarified that while these agreements limit the government's ability to unilaterally disclose details, efforts are made to provide transparency to stakeholders within internationally accepted practices.

The press release highlighted the progress made during recent confidential discussions with bondholders' representatives, noting constructive exchanges and advancements in addressing technical issues. Semasinghe also outlined remaining concerns from Sri Lanka's perspective, emphasizing the importance of resolving these in a satisfactory manner.

In conclusion, Semasinghe affirmed the government's commitment to pursuing productive negotiations with bondholders, aiming to reach mutually beneficial agreements in line with the country's economic recovery goals.

In conclusion, Finance State Minister Shehan Semasinghe's statement reflects Sri Lanka's proactive approach to debt restructuring negotiations, emphasizing transparency, equitable treatment among creditors, and constructive dialogue with bondholders. With progress made in recent discussions and remaining concerns clearly articulated, the government is positioned to continue its efforts towards reaching common ground, ultimately advancing the country's economic recovery agenda.