Sri Lanka has signed a bilateral agreement with the Government of Denmark to restructure USD 39 million of outstanding debt, marking a key milestone in the country’s External Debt Restructuring Process.

Sri Lanka’s entry into a bilateral agreement with the Government of Denmark as part of the External Debt Restructuring Process marks a significant milestone, demonstrating the Government’s continued commitment to successfully concluding the restructuring effort, restoring debt sustainability, and revitalising the national economy, according to the Ministry of Finance, Planning and Economic Development.

Following bilateral discussions after the conclusion of the MoU with the Official Creditor Committee (OCC), the Government of Denmark has agreed to extend a debt relief measure by rescheduling the outstanding debts.

The Bilateral Agreement was signed by Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, on behalf of the GoSL, and Mr. Lars Løkke Rasmussen, Minister for Foreign Affairs, on behalf of the Government of Denmark. 

The estimated rescheduled debt under this agreement amounts to USD 39 million, the statement said.

According to the Ministry, entering into the Agreement will certainly pave the way to developing further the deep and longstanding bilateral relationships between the Government of Denmark and the Government of Sri Lanka. 

“The Government of Sri Lanka extends its sincere appreciation to the Government of Denmark for its continued support and cooperation,” it added.