The news that Sri Lanka has finalised its debt agreements with its major official creditors has been welcomed by the IMF. The debt agreements’ finalisation, according to Senior Mission Chief for Sri Lanka Peter Breuer, is a significant turning point that brings Sri Lanka one step closer to finishing its debt restructuring and regaining debt sustainability.
“IMF applauds the debt agreement”
Breuer told the media on Thursday, “We hope that there will be swift progress on reaching agreements with external private creditors in the near future.”
Sri Lanka completed talks with China Exim Bank and the Official Creditor Committee (OCC) on June 26, 2024, which was a critical step towards restoring its financial stability in the face of recent economic difficulties.
The agreements, which have a combined value of USD 10 billion, include restructuring agreements with significant bilateral lenders that operate under the OCC’s auspices. Japan, India, and France co-chair the OCC. Australia, Austria, Belgium, Canada, Denmark, Germany, Hungary, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, and the United States of America are among the committee’s notable members.
