Sri Lanka Sees Progress on Debt Restructuring

COLOMBO (News 1st); Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), delivered a positive update on the country's debt restructuring efforts.

The Governor reported significant progress on the debt restructuring front. He emphasized the successful completion of the Domestic Debt Optimisation (DDO) operation, which aimed to extend the maturity of domestic debt and reduce the immediate pressure on government finances.

Furthermore, Dr. Weerasinghe announced that Sri Lanka has reached an Agreement in Principle (AIP) with both the Official Creditors Committee (OCC) and the Export-Import Bank of China (EXIM Bank) for debt restructuring. This marks a major milestone in securing long-term debt relief from key creditors.

The Governor also acknowledged ongoing negotiations with other creditors, expressing optimism that similar agreements will be reached soon. He stated, "good faith negotiations are continuing with other creditors to reach an AIP at the earliest."