Research Paper

Sovereign Debt Restructuring Frameworks: Lessons from Zambia and Sri Lanka

Comparative case analysis of the Zambia and Sri Lanka debt restructuring processes, assessing Common Framework implementation and creditor coordination challenges.
Dr. Wei ChenMay 18, 2024Development Economics
DOI10.9876/ri.2024.0518
InstitutionResearch & Policy Institute
Pages32

Dr. Wei Chen

Senior Research Fellow specialising in political economy and development finance. Former World Bank economist with fifteen years of field experience across Southeast Asia.

Abstract

The G20 Common Framework for Debt Treatments was established in 2020 to provide a coordinated approach to sovereign debt resolution for eligible low-income countries. This paper analyses the restructuring processes of Zambia and Sri Lanka — two landmark cases — to draw lessons for framework effectiveness, creditor coordination, and debtor country welfare.