Sri Lanka Secures €188M Debt Relief from Germany

COLOMBO (News 1st); Sri Lanka has signed a bilateral agreement with the Federal Republic of Germany as part of its ongoing external debt restructuring process, marking a significant milestone in the country’s efforts to restore debt sustainability and revive its economy.

The agreement, concluded after bilateral discussions following the Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC), provides for rescheduling outstanding debts, offering critical relief to Sri Lanka during its economic recovery phase.

The signing ceremony took place at the Ministry of Finance, where Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka, while Ms. Sarah Hasselbarth, Chargé d’Affaires a.i., represented the Federal Republic of Germany.

The estimated rescheduled debt under this agreement amounts to €188 million.

Officials noted that this agreement will strengthen the longstanding bilateral relationship between Sri Lanka and Germany, paving the way for deeper cooperation in the future. The Government of Sri Lanka expressed its sincere appreciation to Germany for its unwavering support and partnership.