The Central Bank of Sri Lanka (CBSL) lacks access to information regarding the expenditure incurred by Sri Lanka for the services rendered by financial advisers Lazard and legal adviser Clifford Chance in the country’s debt restructuring process, according to an official of the CBSL’s Communications Department.
When contacted by The Sunday Morning, the CBSL official said that the information regarding the amount the country had spent on Lazard and Clifford Chance as well as on legal proceedings against the Hamilton Reserve Bank could only be obtained from the Ministry of Finance as the CBSL did not have access to the information.
Allegations have recently been raised that no progress has been made on the debt restructuring by the financial and legal advisors despite the millions of dollars spent by Sri Lanka, in addition to the funds being spent on the legal proceedings against Hamilton Reserve Bank.
Progress in restructuring talks is imperative to access a $ 337 million payout from the International Monetary Fund (IMF), for which initial approval has already been secured.
Meanwhile, when contacted, Treasury Deputy Secretary R.M.P. Rathnayake and State Minister of Finance Ranjith Siyambalapitiya both stated that the relevant information was not readily available and to therefore make a formal request to the Treasury/ministry to request the specific information.
In 2022, the Cabinet of Ministers granted approval to hire an international financial advisory service provider and an international legal advisory service provider to restructure the over $ 12 billion external debt of the country, with Lazard Ltd. of France chosen for financial advice and Clifford Chance LLP for legal advice.
Sri Lanka reportedly retained Lazard at a cost of $ 5.6 million for its services over four quarters.
Amidst the ongoing debt restructuring, Sri Lanka has requested a further stay of proceedings for five months in its legal dispute with its financial creditor Hamilton Reserve Bank, citing ongoing debt restructuring efforts that are yet to be completed.