Japan Pushes for Swift Debt Restructuring MoU Signing between SL and Official Creditors
January 09, Colombo (LNW): Japan has stressed the urgency of finalizing the Memorandum of Understanding (MoU) on debt restructuring between the Official Creditor Committee and the Sri Lankan Government. In a recent statement from the Japanese Foreign Ministry, transparency and comparability in agreements with creditors beyond the Official Creditor Committee were also highlighted.
Kazuya Endo, Director-General of the International Cooperation Bureau at Japan’s Foreign Ministry, emphasized these points during the Japan–Sri Lanka Economic Cooperation Policy Dialogue held in Colombo. This dialogue, conducted with Finance Secretary K.M.M. Siriwardana, aimed to comprehensively discuss bilateral economic cooperation following up on last year’s Japan–Sri Lanka Summit Meeting.
Acknowledging Sri Lanka’s reform efforts under the IMF programme, DG Endo expressed Japan’s support for continued necessary reforms. Secretary Siriwardana, in turn, detailed ongoing reform implementations and debt restructuring while appreciating Japan’s contributions to the debt discussions.
The dialogue also encompassed discussions on Japan’s future economic collaborations with Sri Lanka, focusing on stabilizing and reinforcing Sri Lanka’s economy while addressing socio-economic challenges through existing Yen loan projects.
DG Endo assured Japan’s ongoing support for Sri Lanka’s recovery from the economic crisis, emphasizing the importance of steady development. Secretary Siriwardana expressed gratitude for Japan’s support toward this goal.
Notably, a preliminary agreement on debt restructuring involving approximately US$ 5.9 billion of Sri Lanka’s outstanding public debt was reached in November last year among a group of creditor nations and Colombo. Japan, co-chairing this group alongside France and India, played a pivotal role in this agreement. Additionally, Sri Lanka has forged a debt restructuring deal with China alongside these efforts.
