Sri Lanka signs SAR 517 Million debt deal with Saudi Fund

The Government of Sri Lanka has signed Bilateral Amendatory Loan Agreements with the Saudi Fund for Development (SFD), marking a key step in the country’s external debt restructuring process.

The Ministry of Finance, Planning, and Economic Development confirmed that the agreements were signed yesterday (July 14).

The Kingdom of Saudi Arabia has continued to support Sri Lanka by disbursing loans even after the country declared a debt standstill due to its economic crisis. This ongoing assistance has allowed many development projects in Sri Lanka to move forward without delays.

The loans provided by the SFD were on concessionary terms, easing the pressure on Sri Lanka’s overall debt burden. The total amount restructured under the new agreements is Saudi Riyal (SAR) 516,951,065.02.

Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning, and Economic Development, signed the agreements on behalf of Sri Lanka. Sultan Abdulrahman A. Almarshad, Chief Executive Officer of the Saudi Fund for Development, signed on behalf of the Kingdom of Saudi Arabia.

The Finance Ministry noted that this agreement is expected to further strengthen the longstanding and friendly ties between the two countries.