Sri Lanka signs debt treatment agreement with China’s EXIM Bank
June 26, 2024 06:41 pm
Sri Lanka signed debt treatment agreements with the Export-Import Bank of China (EXIM) in Beijing, a short while ago, to restructure USD 4.2 billion of debt, the President’s Media Division said.
The Framework Agreement related to this was signed between Sri Lanka and China in Colombo, Sri Lanka.
This restructuring provides significant debt relief, allowing Sri Lanka to allocate more funds to essential public services and resume concessional financing for critical infrastructure development, the PMD added.
State Minister of Finance Shehan Semasinghe also confirmed that Sri Lanka signed a debt treatment agreement with the Export-Import Bank of China to restructure USD 4.2 billion of its debt.
“This move is part of an ongoing effort to manage the country’s financial challenges. The framework agreement for this debt treatment was signed between Sri Lanka and China in Colombo,” he posted on ‘X’.
He stated that this debt treatment agreement is a crucial step for Sri Lanka in stabilizing its economy and addressing its debt crisis.
Meanwhile, the total value of debt restructuring agreements that Sri Lanka reached today with creditor nations, including the Official Creditor Committee and with EXIM Bank of China is USD 10 billion.
They will provide up to 92% relief on debt repayments during International Monetary Fund (IMF) Extended Fund Facility (EFF) program.
