Sri Lanka inks €30 mn debt rescheduling deal with Hungary

Sri Lanka has signed a bilateral agreement with Hungary’s official export credit agency to reschedule approximately €30 million of outstanding debt, marking another key step in its broader external debt restructuring process, the Finance Ministry announced yesterday.

The agreement, signed with Hungarian Export Credit Insurance Plc. (MEHIB), follows Sri Lanka’s Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC).

“The signing of the bilateral Agreement with the Hungarian Export Credit Insurance Plc. in relation to the External Debt Restructuring Process, is a significant milestone of the External Debt Restructuring Process and testament to GoSL’s commitment to conclude the restructuring process as soon as possible to restore debt sustainability and thereby revamp Sri Lanka’s economy,” the Ministry said in a statement.

The agreement was signed by Ministry Secretary Dr. Harshana Suriyapperuma on behalf of the Sri Lankan government, and Györgyi Rehoregh and Dr. Adrienn Hegyi Szénásiné on behalf of MEHIB.

Hungary’s agreement to provide debt relief by rescheduling Sri Lanka’s outstanding obligations reflects growing traction with bilateral creditors. 

“The signing of the agreement will certainly pave the way to developing further the deep and longstanding bilateral relationships between Hungary and the Government of Sri Lanka,” the Ministry added.