USD 930.8 Million Debt Restructuring Deal Signed Between Sri Lanka and India

COLOMBO (News 1st): The Government of Sri Lanka (GoSL) has signed Bilateral Amendatory Agreements with the Export-Import Bank (EXIM) of India, marking a significant milestone in the country's External Debt Restructuring Process.

This is pertaining to the Line of Credits and Buyer’s Credit Loan Agreements under the External Debt Restructuring Process of Sri Lanka.

The Government of India has played a pivotal role in spearheading this process, co-chairing the Official Creditor Committee alongside France and Japan, said the Finance Ministry.

The agreements, signed on March 25, 2025, and April 03, 2025, pertain to Lines of Credit and Buyer’s Credit Loan Agreements, totaling approximately USD 930.8 million. K.M. Mahinda Siriwardana, Secretary of the Ministry of Finance, Planning, and Economic Development, signed on behalf of the GoSL, while Nirmit Ved, General Manager of EXIM Bank of India, signed the Lines of Credit, and Amith Kumar, Deputy General Manager of EXIM Bank India, signed the Buyer’s Credit Agreements.

The conclusion of these bilateral Amendment Agreements is expected to further deepen the longstanding bilateral relationships between the Government of India and the Government of Sri Lanka.

India's leadership, commitment, and constructive engagement, coupled with emergency assistance during the peak of Sri Lanka's economic crisis, were instrumental in navigating the challenges of economic recovery and making remarkable progress towards restoring debt sustainability, added the Finance Ministry.