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Central Bank says Sri Lanka has 'clear plan' to deal with debt crisis

The head of Sri Lanka's Central Bank, Indrajit Coomaraswamy said this week the country had what he described as a "clear plan" to deal with the debt crisis. 

The country is due to repay over $5 billion in the next 12 months. 

"We don't see it as a (sovereign default) risk," Mr Coomaraswamy told Reuters, adding that the government had "committed itself" to using divestment proceeds "for liability management."

"We are an outlier on our debt metrics, but we've never missed a single debt repayment commitment, and we certainly don't intend to do that," he said. 

"We feel we have a clear plan to manage the situation."

His comments came as Moody's warned this week that Sri Lanka's "significant borrowing requirements and heavy reliance on external and foreign-currency funding expose the sovereign to material liquidity and external financing risk, which weighs on Sri Lanka's credit profile."
 

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