Sri Lanka secures $5.8b debt restructuring deal

Sri Lanka successfully reached a debt restructuring agreement with creditors in Paris on Wednesday. The deal value amounts to $5.8 billion of its outstanding debt.

The deal was reached with the Paris Club, a group of creditor nations that includes major economies like Japan, South Korea, Australia, France, and the US. Notably, India, a non-member creditor, also collaborated with the Paris Club on this deal.

Sri Lanka’s President’s media office released a statement highlighting the agreement’s significance. It emphasises that the deal offers “significant debt relief,” enabling Sri Lanka to allocate more resources towards essential public services and secure concessional financing to support development needs.

Shehan Semasinghe, Sri Lanka’s Minister of Finance, expressed gratitude to the Paris Club chairs (France, India, and Japan) and the Export-Import Bank of China for their leadership in the process. Negotiations with China for bilateral debt restructuring are also reportedly underway.

Furthermore, President Ranil Wickremesinghe will address the nation later tonight at 8:00 pm local time. Sources close to the president reveal that the debt restructuring agreement will be presented in parliament to ensure transparency.