Government signed a deal with creditor nations to restructure about US$ 5.8 billion in bilateral debt, in a move that would help stabilise the economy, the Presidential Media Division in a tweet said.
The deal brings the country closer to finalising a debt-restructuring process, which started in September 2022 after its reserves hit their lowest levels and forced the country to default on its foreign debt for the first time in history.
The agreement, which covers a total of 17 countries, allows Sri Lanka to move forward with a US$ 2.9 billion programme with the International Monetary Fund (IMF) that is aimed at helping the country recover from its financial crisis.
The deal was signed by Sri Lankan officials in Paris with the Official Creditor Committee (OCC), which is co-chaired by Japan, India, and France.
“Sri Lanka reached a final restructuring agreement for US$ 5.8 billion of debt with its bilateral lenders’ Official Creditor Committee. This grants significant debt relief, allowing Sri Lanka to allocate funds to essential public services and secure concessional financing for development needs,” the Presidential Media Division said in a tweet.
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