S. Korea backs SL’s recovery push with US $ 267mn EDCF debt amendment exchange

The government last week moved to secure the continuity of a key source of concessional development financing, as the Republic of Korea formally exchanged the signed debt restructuring amendment agreements linked to 18 Economic Development Cooperation Fund (EDCF) loans worth around US $ 267 million. 

The exchange took place during the 2026 EDCF Policy Dialogue held in Colombo, where the senior officials from both countries reviewed the status of the ongoing Korean-funded infrastructure projects, aligned future development priorities and discussed the extension of the existing EDCF Framework Arrangement that underpins Seoul’s concessional lending support to Sri Lanka.

The Finance Ministry noted the signing of the debt restructuring amendment agreements is a significant administrative milestone that would allow the development cooperation between the two countries to continue uninterrupted amid Sri Lanka’s evolving debt treatment process. The discussions also reflected a broader recalibration of bilateral development priorities following Sri Lanka’s economic crisis, with Korean development assistance increasingly being aligned with the country’s recovery and medium-term growth agenda.

During the dialogue, Sri Lanka’s National Planning Department and External Resources Department presented updates on the country’s National Development Plan and the latest progress in the debt restructuring efforts.

Meanwhile, the Korean delegation outlined the Republic of Korea’s Framework Plan for International Development Cooperation for 2026-2030 and its medium-term operational direction, setting the tone for deeper engagement in priority sectors.

The delegates also held extensive technical discussions on several ongoing projects financed under the EDCF facility, which has historically supported major infrastructure and development initiatives in Sri Lanka through long-term concessional financing.

One of the key areas of focus was the proposed extension of the current EDCF Framework Arrangement signed in 2018, which provides the legal and financial basis for Korean funding support to Sri Lanka.

The Korean delegation comprised officials from the Economy and Finance Ministry and Export-Import Bank of Korea (KEXIM), headed by Director Daehee Kim, while the Sri Lankan delegation was led by Finance Ministry Secretary Dr. Harshana Suriyapperuma alongside the senior Treasury officials, representatives from the line ministries and project executing agencies.