President Ranil Wickremesinghe announced significant progress in Sri Lanka’s debt restructuring process, securing $5 billion in loan interest relief from bilateral creditors and a $3 billion debt write-off from commercial creditors. This announcement was made at the Urumaya Freehold Land Deed Ceremony in Kurunegala.
In recent developments, Sri Lanka and its creditors have reached an agreement on a $12 billion bond restructuring, which includes a 28% nominal haircut on existing bonds.
The International Monetary Fund (IMF) highlighted that agreements with China and other creditor nations to restructure about $10 billion in bilateral debt bring Sri Lanka closer to restoring debt sustainability. Additionally, Sri Lanka finalized a $5.8 billion debt restructuring deal with its bilateral lenders’ Official Creditor Committee in Paris, France.