Sri Lanka, China Sign $4.2 Billion Debt Restructuring Deal

COLOMBO (News 1st); Sri Lanka signed debt treatment Agreements in Beijing with China Exim Bank to restructure USD 4.2 billion of debt on Wednesday (26).

The President's Media Division said that the Framework Agreement related to this was signed between Sri Lanka and China in Colombo, Sri Lanka. This restructuring provides significant debt relief, allowing Sri Lanka to allocate more funds to essential public services & resume concessional financing for critical infrastructure development, said the President's Media Division.

State Minister Shehan Semasinghe shared the following on X:

"We are pleased to announce that Sri Lanka signed debt treatment agreement with Export Import Bank of China to restructure USD 4.2 billion of its debt. This move is part of an ongoing effort to manage the country's financial challenges. The framework agreement for this debt treatment was signed between Sri Lanka and China in Colombo. The debt treatment agreement is a crucial step for Sri Lanka in stabilizing its economy and addressing its debt crisis"