Sri Lanka and Germany have entered into a bilateral agreement in relation to the external debt restructuring process, the Ministry of Finance said in a statement.

The agreement marks a significant milestone and reflects Sri Lankan government’s continued commitment to conclude the debt restructuring process successfully in order to restore debt sustainability and revamp the economy, the Ministry added.

Following bilateral discussions after the conclusion of the Memorandum of Understanding with the Official Creditor Committee (OCC), the Government of Germany had agreed to extend a debt relief measure by rescheduling the outstanding debts.

Accordingly, the bilateral agreement was signed by Dr. Harshana Suriyapperuma, the Secretary of the Ministry of Finance, Planning and Economic Development, on behalf of the government, and Sarah Hasselbarth, the Charge’ d’Affaires a.i., on behalf of the Federal Republic of Germany, at the Ministry of Finance.
The estimated rescheduled debt under the agreement amounts to Euro 188 million, the Finance Ministry.

Entering into the agreement will certainly pave the way to developing further the deep and longstanding bilateral relationships between the Federal Republic of Germany and the Government of Sri Lanka, the Ministry noted.