The Central Bank of Sri Lanka (CBSL) has unveiled a far-reaching domestic debt restructuring plan aimed at restoring stability in the crisis-hit country.

The move on Thursday comes as the government tries to meet the conditions of a $2.9bn International Monetary Fund (IMF) bailout agreed upon in March seen as crucial to the economic recovery of the the island nation, which defaulted on its foreign debt for the first time last year.

The long-awaited restructuring is needed to help Sri Lanka reach the IMF programme’s goal of reducing overall debt to 95 percent of gross domestic product (GDP) by 2032.

Last year, a foreign exchange crisis left the government unable to pay for imports of fuel, food, medicine and other essentials, leading to protests that brought about the removal of then-President Gotabaya Rajapaksa.

Click for the full article at Al Jazeera

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