Sri Lanka signs $4.2 Billion debt restructuring agreement with China’s EXIM Bank

Sri Lanka has signed agreements with the Export-Import Bank of China (EXIM) in Beijing to restructure $4.2 billion of its debt, according to the President’s Media Division (PMD).

The Framework Agreement for this restructuring was signed in Colombo, Sri Lanka.

This debt restructuring offers significant relief, enabling Sri Lanka to allocate more funds to essential public services and restart concessional financing for crucial infrastructure projects, the PMD added.

State Minister of Finance Shehan Semasinghe also confirmed the signing of the debt treatment agreement with EXIM to restructure $4.2 billion of Sri Lanka’s 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 mentioned that this debt treatment agreement is a vital step for Sri Lanka in stabilizing its economy and addressing its debt crisis.

Additionally, the total value of debt restructuring agreements Sri Lanka reached today with creditor nations, including the Official Creditor Committee and EXIM Bank of China, is $10 billion.

These agreements will provide up to 92% relief on debt repayments during the International Monetary Fund (IMF) Extended Fund Facility (EFF) program.