Sri Lanka signed debt treatment agreements in Beijing with China’s Exim Bank, Wednesday, to restructure USD 4.2 billion of debt.
The Framework Agreement related to this was signed between Sri Lanka and China in Colombo, Sri Lanka, the President’s Media Division said.
The restructuring provides significant debt relief, allowing Sri Lanka to allocate more funds to essential public services and resume concessional financing for critical infrastructure development.
Earlier, Chinese Foreign Ministry Spokesperson Mao Ning said China stands ready to work with relevant countries and international financial institutions to support Sri Lanka in realizing debt sustainability.
The Export-Import Bank of China was the first to tentatively agree with Sri Lanka on debt treatment, which has been crucial for Sri Lanka to advance fiscal reform and win further support from international creditors, she said in response to a question during her regular briefing held in Beijing.
She said that the Chinese side stood ready to work with relevant countries and international financial institutions to support Sri Lanka in realizing debt sustainability.
