Sri Lanka Sri Lanka President Ranil Wickremesinghe on Wednesday announced that long-pending $5.8 billion debt restructuring agreements with bilateral creditors, including India and China, had been finalised in Paris. He described the development as an “important milestone” that would boost international confidence in the cash-strapped country. India has welcomed Sri Lanka’s debt restructuring agreement with a group of creditor countries. President Wickremesinghe also holds the finance minister’s portfolio. In his address to the nation, he said Prime Minister Dinesh Gunawardene would present these agreements in Parliament on July 2 for approval.
The payment of installments can be deferred till 2028
Wickremesinghe happily said, “This morning in Paris, Sri Lanka reached a final agreement with our official bilateral creditors. Similarly, we signed another agreement with the Exim Bank of China in Beijing today.” Wickremesinghe has been at the forefront of efforts to pull Sri Lanka out of economic crisis since it announced its first sovereign default in 2022. Describing this progress as an ‘important milestone’, the President said, “With these agreements we will be able to defer the payment of all bilateral debt installments until 2028. In addition, we will have the opportunity to repay all debts on concessional terms with an extended period until 2043.”
India welcomed
He expressed his gratitude to the lenders, including China and the Exim Bank of China, India, Japan and France, who are co-chairs of the Official Creditors Committee. Meanwhile, India welcomed Sri Lanka’s debt restructuring agreement with a group of creditor countries, saying it will continue to support its economic reform, including by promoting long-term investments. India is one of the co-chairs of the Official Creditors Committee (OCC). It was formed in April last year to finalise Sri Lanka’s debt restructuring plan. “The OCC signed the Memorandum of Understanding (MoU) on debt restructuring on June 26 after several rounds of negotiations,” the Ministry of External Affairs said in a statement. The milestone reflects the strong progress made by Sri Lanka in stabilising its economy and moving towards reform and growth, the ministry said.
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