Sri Lanka Nears Confirmation on Debt-Restructuring Agreement with Creditor Nations

According to a government source speaking to Reuters on Wednesday (29), Sri Lanka has been informed of a debt-restructuring agreement with creditor nations. However, formal confirmation in the form of a letter from the official creditor committee is pending.

This anticipated agreement follows closely on the heels of the island nation’s recent deal with the Export-Import Bank of China, which covered approximately $4.2 billion of the country’s outstanding debt. The new agreement with the group of creditor nations arrives at a crucial time for Sri Lanka, grappling with substantial debt burdens, signaling efforts to navigate and manage its financial obligations effectively.