Sri Lanka and Australia sign bilateral debt restructuring agreements

The Government of Sri Lanka and the Government of Australia have entered into bilateral agreements on external debt restructuring, marking a significant milestone in Sri Lanka’s ongoing efforts to restore debt sustainability and revamp its economy.

These agreements reflects the strong commitment of the Government of Sri Lanka to conclude the external debt restructuring process in a timely manner, following the Memorandum of Understanding (MoU) reached with the Official Creditor Committee (OCC), said the Ministry of Finance, Planning and Economic Development.

Through constructive bilateral discussions, the Government of Australia has agreed to extend debt relief to Sri Lanka by rescheduling outstanding debt obligations. The total debt restructured under these agreements is estimated at approximately USD 39 million, the statement said.

The signing of the agreements took place on Monday (27), at the Ministry of Finance. Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, signed the agreements on behalf of the Government of Sri Lanka. The signed documents were officially exchanged between Dr. Suriyapperuma and High Commissioner Designate of Australia to Sri Lanka, Matthew Duckworth.

This bilateral agreement not only contributes to Sri Lanka’s path toward economic stability but also strengthens the deep and longstanding relationship between Sri Lanka and Australia, the finance ministry said. 

The Government of Sri Lanka also extended its sincere appreciation to the Government of Australia for its continued support and cooperation.