Debt Justice

An International Monetary Fund (IMF), team was in Sri Lanka from September 14-to 27 to discuss economic and financial policies and conduct the First Review of the Extended Fund Facility program comprised of a loan of USD 2.9 billion to be disbursed over four years. The  lender of last resorts was unable to reach a […]

Funding Universal Child Benefit through innovative external debt restructuring   “There can be no keener revelation of a society’s soul than the way in which it treats its children.”  –  Nelson Mandela, 1995    Sri Lanka defaulted on its external debt obligations amid a deep economic crisis last year.   Across the country, the majority of

The government’s proposed domestic debt restructuring plan is going to be devastating for the most marginalized working people, like plantation and garment workers The domestic debt restructuring plan announced by the Government last Wednesday and passed by parliament on Saturday, targets only one significant domestic financial asset, namely retirement funds. Far reaching changes to the

Debt-for-nature swaps have emerged as a mechanism, from the Global North to address both environmental conservation and sovereign debt challenges. While they offer a potential solution to private creditors and money markets  these arrangements have sparked significant controversy due to their complexities and potential unintended consequences. There are controversies surrounding debt-for-nature swaps and key concerns associated

The IMF Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) of SDR 2.286 billion (about $ 3 billion) to support Sri Lanka’s economic policies and reforms. The Sri Lanka Government and business elite have welcomed the approval of the 17th IMF program, despite the failures of every one of the previous

Without a major course correction in its economic trajectory and a significant “haircut” on its external debt, the country will likely be knocking on the door for another IMF pact. It could face another default in a few years.   The International Monetary Fund (IMF) executive board’s approval of loans is being celebrated in the elite

Sri Lanka’s default highlights the dangers of relying on international sovereign bonds – with high interest rates – to fund development.   Sri Lanka’s debt default – announced in April of last year amid foreign currency shortages that had triggered rolling blackouts, fuel queues, and street protests – has been subject to endless debate by