REPUBLIC WORLD



 

Amid the ongoing crisis, the Japanese government promised to coordinate with other creditors to find a solution to the island nation's escalating financial woes

As Sri Lanka continues to reel under the unprecedented economic crisis, the Japanese government has promised to coordinate with other creditors to find a solution to the island nation's escalating financial woes.

Speaking to reporters on Tuesday, Japanese Finance Minister Shunichi Suzuki stated that his country would urge all creditor nations to convene a meeting to discuss Sri Lanka's persisting debt crisis.

He also called on the Sri Lankan government to expedite discussions with the International Monetary Fund (IMF) on a bailout package and also urged bilateral creditors, including India and China to convene a meeting to evaluate the situation. 

"We are concerned about Sri Lanka’s severe socio-economic situation. Japan wants to actively cooperate with other creditor countries and public organisations," Suzuki told reporters, as per Colombo Page.

Meanwhile, Japanese Foreign Minister Yoshimasa Hayashi stated that the Sri Lankan government must work closely with the IMF and other parties to strive to improve its economic and fiscal situation while upholding complete transparency. 

 

Ranil Wickremesinghe to meet Fumio Kishida in September

"We plan to consider our response while watching such moves and the situation in the island nation and consulting with Sri Lanka, other donors and international organisations," Hayashi added.

Earlier in August, Sri Lankan President Ranil Wickremesinghe stated that the country would urge Japan to extend invitations to the major creditor countries for talks on restructuring bilateral debts.

He further stated that he would be meeting Japanese Prime Minister Fumio Kishida in Tokyo in September.

This comes after Japan decided to suspend its at least 12 projects in the island nation until the International Monetary Fund establishes a roadmap to alleviate the turmoil. 

 

Sri Lanka seeks $4 billion bailout package from IMF

It should be noted here that Sri Lanka has been experiencing its worst economic crisis since its independence in 1948.

The country has huge debt obligations and dwindling foreign reserves, and has been struggling to pay for imports, causing a shortage of essentials. Meanwhile, Sri Lanka has sought a $4 billion (Over Rs 30,000 crores) bailout package from the IMF to steer the country's fragile economy, which has also caused severe food and gasoline shortages across the island nation.