Sri Lanka expects up to US$ 338 million in debt relief and moratoriums in 2005

Sri Lanka expects up to US$ 338 million in debt relief and moratoriums in 2005 form bilateral partners, to help tied over the cost of post-tsunami reconstruction, the External Resources Department said in a pre-Development Forum report. Sri Lanka expects up to US$ 338 million in debt relief and moratoriums in 2005 form bilateral partners, to help tied over the cost of post-tsunami reconstruction, the External Resources Department said in a pre-Development Forum report. The savings will help Sri Lanka finance capital goods imports needs for the post-tsunami reconstruction effort without influencing the country’s exchange rate significantly.

Already close to US$ 100 million in loan repayments has been wavered or rescheduled by the G7 grouping and other development partner including India and the United States while Britain and Canada have taken up a percentage of loan commitments to the International Development Agency.

The United States so has made the largest and most recent debt deferment of US$ 40 million on that the savings are routed for tsunami relief in affected coastal regions of the island.

India committed itself to a three year debt moratorium, with 2005 commitments accounting for US$ 7 million.

Canada and