The government of Sri Lanka has reached an agreement on the key principles and indicative terms of a debt treatment with the Export-Import Bank of China, Sri Lanka’s Ministry of Finance announced.
Issuing a statement, the Finance Ministry said the agreement in principle covers approximately USD 4.2 billion of outstanding debt.
“It constitutes a key step towards restoring Sri Lanka’s long-term debt sustainability and will pave the way to a prompt economic recovery,” it said.
The Finance Ministry further said the Sri Lankan authorities hope this landmark achievement will provide an anchor to their ongoing engagement with the Official Creditor Committee and commercial creditors, including bondholders.
It should also facilitate approval by the International Monetary Fund (IMF) Executive Board of the first review of the IMF-supported programme in the coming weeks, allowing for the next tranche of the IMF financing of about USD 334 million to be disbursed, the Ministry added. (NewsWire)
