Sri Lanka agrees debt restructuring plan with Japan, India, others
Export-Import Bank of China will also sign agreement
COLOMBO -- Bankrupt Sri Lanka received a fresh boost on Wednesday after reaching a final agreement in Paris to restructure $5.8 billion of debt with its creditors, as the government tries to steer the country out of its worst economic crisis.
Members of the Paris Club, part of its creditor committee, include Japan, South Korea, Australia, France and the U.S., among others. India is also working with the group as a nonmember creditor.
"This agreement grants significant debt relief, allowing Sri Lanka to allocate funds to essential public services and secure concessional financing for its development needs," the president's media office said in a statement.
Shehan Semasinghe, state minister of finance, posted on X from Paris: "We are pleased to announce that the final agreement has been reached on debt restructuring between Sri Lanka and the Official Creditor Committee (OCC) on the sidelines of the Paris Forum 2024 in Paris, France."
He also tweeted that Sri Lanka was in the process of signing bilateral debt agreements with the Export-Import Bank of China: "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."
Sri Lankan President Ranil Wickremesinghe will address the nation at 8:00 p.m. local time. Sources close to the president said the restructuring agreement will be presented in parliament for transparency.