The United States (U.S) is encouraging Sri Lanka to continue the reform process, adopting transparent and sustainable changes that foster long-term prosperity and growth.
The US Ambassador to Sri Lanka, Julie Chung welcomed the news of a final agreement on debt restructuring between Sri Lanka and creditor nations, reached today on the sidelines of the Paris Forum 2024.
“This is a positive step forward in Sri Lanka’s economic recovery and resilience, helping build more confidence in Sri Lanka’s fiscal environment,” she said on X.
Sri Lanka signed a deal with creditor nations to restructure about US$5.8 billion in bilateral debt, the office of the country’s president said on Wednesday (Jun 26), in a move that would help stabilise its crisis-hit economy.
Officials from the cash-strapped South Asian nation signed the agreement in Paris with the Official Creditor Committee (OCC), which is co-chaired by Japan, India, and France.
“This agreement grants significant debt relief, allowing Sri Lanka to allocate funds to essential public services & secure concessional financing for its development needs,” the president’s media office said in a statement.
Sri Lanka is also in the process of signing separate bilateral agreements with China EXIM Bank to restructure US$4.2 billion of debt, State Minister of Finance Shehan Semasinghe said on social media platform X.
