France and Sri Lanka sign bilateral debt restructuring agreement

Colombo, June 17 (Daily Mirror) - France and Sri Lanka have today signed a bilateral agreement to implement the recommendations of the Memorandum of Understanding (MoU) on Sri Lanka’s debt restructuring, concluded on June 26, 2024. 

The MoU was reached with the Official Creditors Committee, co-chaired by France, India, and Japan, alongside Paris Club creditors.

Under the agreement, Sri Lanka's debt stock of €390 million will be rescheduled through 2042, including a five-year grace period and a cap on original interest rates.

The agreement was signed by William Roos, Assistant Secretary for Multilateral Affairs, Trade and Development at the French Treasury, and Mahinda Siriwardana, Secretary to the Sri Lankan Ministry of Finance, Planning and Economic Development. The signing took place in the presence of French Ambassador to Sri Lanka Rémi Lambert, Sri Lankan Deputy Minister Dr. Harshana Suriyapperuma, and Central Bank Governor Dr. Nandalal Weerasinghe.

This bilateral accord marks a key milestone in France’s support for Sri Lanka’s economic recovery. It is part of a coordinated effort among Sri Lanka’s main official creditors to restore debt sustainability and aligns with the principle of comparability of treatment for third-party creditors.

The agreement also supports the implementation of the International Monetary Fund’s multi-year financing programme for Sri Lanka, valued at €2.8 billion.