Sri Lanka will present a strategy to creditors for debt restructuring.

Seven Sri Lankan authorities will hold formal talks with international lenders on Friday . The success of the transition is critical to gain final approval for a $2.9 billion loan from the International Monetary Fund .

COLOMBO, Calif. : On Friday, seven Sri Lankan authorities will hold formal talks with international lenders to begin the process of resolving billions of dollars in debt and discussing ways to address the islands worst economic crisis in more than seven decades.For the nation of 22 million, the success of the transition is critical to gain final approval for a $2.9 billion loan from the International Monetary Fund and subsequent funding from other international agencies.The funds will help the island nation cope with an acute shortage of food and fuel that sparked widespread street demonstrations for months this year and resulted in the ouster of then-President Gotabaya Rajapaksa.Sri Lanka's finance and other officials plan to host a virtual interactive meeting on September 1 to discuss the goals of the loan agreement with the IMF and the next steps of the debt restructuring process.

The government has also held preliminary restructuring talks with India and diplomats based in Colombo.According to a source with the president's office, the meeting with ambassadors arranged by him on Thursday received a very positive response, according to an official in the administration.Sri Lanka is attempting to get the IMF agreement signed by December or early next year.According to a study published in August by the Ministry of Finance, Sri Lanka's foreign currency debt was $47.3 billion as of the end of 2021 and local-currency debt was $53.6 billion.

The foreign currency debt includes $13 billion in international sovereign bonds, largely owned by private creditors, such as asset managers BlackRock and Ashmore.