Sri Lanka and India sign key agreements on restructuring external debt

The Government of Sri Lanka has signed important bilateral amendatory agreements with the Export-Import Bank (EXIM) of India as part of the country’s ongoing External Debt Restructuring Process.

In a statement issued by the Ministry of Finance, Planning and Economic Development, the agreements cover Lines of Credit and Buyer’s Credit Loan Agreements. The ministry said this marks a major step forward in Sri Lanka’s efforts to manage and restructure its external debt.

The Government of India has played a crucial role in supporting Sri Lanka during its economic crisis. India co-chairs Sri Lanka’s Official Creditor Committee along with France and Japan. The Finance Ministry highlighted that India’s leadership, commitment, and timely emergency assistance were vital for Sri Lanka to recover from the crisis and move toward restoring debt sustainability.

According to the Finance Ministry, the agreements were signed during March and April this year. A total of seven Line of Credit agreements and four Buyer’s Credit Facility agreements were restructured, amounting to approximately USD 930.8 million.

K.M. Mahinda Siriwardana, Secretary to the Ministry of Finance, Planning, and Economic Development, signed the agreements on behalf of Sri Lanka. Nirmit Ved, General Manager of EXIM Bank of India, signed the Line of Credit agreements, while Amith Kumar, Deputy General Manager of EXIM Bank India, signed the Buyer’s Credit Agreements.

The Finance Ministry stated that the conclusion of these agreements will further strengthen the long-standing and close relationship between Sri Lanka and India.

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