Sri Lanka reaches final agreement to restructure US$ 5.8 Bn of debt

June 26, 2024 at 2:35 PM

Sri Lanka reached a final restructuring agreement for US$ 5.8 billion of debt with its bilateral lenders’ Official Creditor Committee in Paris, France today.

According to the President’s Media Division (PMD), this agreement with bilateral lenders grants significant debt relief.

The PMD added that this agreement also allows Sri Lanka to allocate funds to essential public services and secure concessional financing for its development needs. 

Meanwhile, taking to ‘X’, State Minister of Finance Shehan Semasinghe announced that the final agreement was reached on debt restructuring between Sri Lanka and the Official Creditor Committee (OCC) on the sidelines of the Paris Forum 2024 in France.

The State Minister further said that Sri Lanka is also in the process of signing bilateral debt treatment agreements between Sri Lanka and the Export-Import Bank of China today.

“On behalf of Sri Lanka, I would like to sincerely thank the OCC chairs – France, India, and Japan – as well as the Export-Import Bank of China for their leadership in this process, as well as all OCC members for their unwavering support. 

“I also commend the OCC Secretariat for their dedication to finding a resolution to our debt crisis and achieving this significant milestone, which will enhance confidence in our economy and foster growth,” he said.

State Minister of Finance Shehan Semasinghe further reiterated that the unwavering commitment and leadership of President Ranil Wickremesinghe have been instrumental in steering Sri Lanka towards this milestone achievement. (Newswire)