Sri Lanka signs US $ 39mn debt restructuring deal with Australia

From left: High Commissioner Designate of Australia to 

Sri Lanka Matthew Duckworth and Finance, Planning and Economic Development Ministry Secretary Dr. Harshana Suriyapperuma in a firm handshake following the exchange of the agreement

Sri Lanka and Australia yesterday entered into bilateral agreements on external debt restructuring, marking a “significant milestone” in the island nation’s ongoing efforts to restore debt sustainability and revamp its economy, the Finance Ministry said yesterday.

“These agreements reflect the strong commitment of the government of Sri Lanka to conclude the external debt restructuring process in a timely manner, following the memorandum of understanding reached with the Official Creditor Committee,” the Finance Ministry said.

Finance, Planning and Economic Development Ministry Secretary Dr. Harshana Suriyapperuma signed the agreements on behalf of Sri Lanka. The signed documents were officially exchanged between Dr. Suriyapperuma and High Commissioner Designate of Australia to Sri Lanka Matthew Duckworth.

“Through constructive bilateral discussions, the government of Australia has agreed to extend debt relief to Sri Lanka by rescheduling the outstanding debt obligations.

The total debt restructured under these agreements is estimated at approximately US $ 39 million,” the statement said. 

The ministry added, “This bilateral agreement not only contributes to Sri Lanka’s path toward economic stability but also strengthens the deep and long-standing relationship between Sri Lanka and Australia.”