Sri Lanka’s president’s office announced on Wednesday ( Jun 26 ) that it had reached a deal with creditor nations to restructure about US$ 5.8 billion in bilateral debt, in a move that would help stabilize its hit-crisis-hit economy.
The Official Creditor Committee ( OCC), which is co-chaired by Japan, India, and France, signed the agreement in Paris with officials from the cash-strapped South Asian country.
The government’s media business stated in a statement that” this agreement provides significant debt reduction, allowing Sri Lanka to allocate money to ostensible public services and, as well as, safe concessional funding for its advancement needs.”
State Minister of Finance Shehan Semasinghe stated on social media platform X that Sri Lanka is also in the process of negotiating individual intergovernmental agreements with China EXIM Bank to rebuild US$ 4.2 billion in debt.