OCC clears proposed settlement for SriLankan Airlines borrowings

The Official Creditor Committee (OCC) has formally granted a “no objection” clearance, enabling Sri Lanka to proceed with its proposed settlement arrangements for foreign borrowings guaranteed by the government for SriLankan Airlines.

Finance Ministry Secretary Dr. Harshana Suriyapperuma announced the development, noting that Sri Lanka has kept the financial markets informed through disclosures to the Singapore Exchange in line with the compliance requirements.

“We have indicated certain arrangements in principle, including agreements and information-sharing mechanisms. We are very grateful and happy to inform that the OCC has conveyed its position of no objection, supporting Sri Lanka during this difficult time,” Dr. Suriyapperuma said.

The clearance, granted following advice from legal experts, marks a significant milestone in the country’s debt restructuring process.

Sri Lanka has already completed the restructuring of more than 90 percent of its debt obligations. The officials said the remaining steps are largely procedural and expected to be concluded within a short period.

“With the support of all parties involved, we should be able to complete them within a short period,” Dr. Suriyapperuma added.