Sri Lanka Secures $5.8 Billion Debt Restructure Deal

Sri Lanka signed a deal to restructure $5.8 billion in bilateral debt with creditor nations, a move aimed at stabilising its crisis-hit economy. The agreement, signed in Paris with the Official Creditor Committee, provides significant debt relief and allows for funds allocation to essential public services.

(Adds comment from the president's media office in paragraph 3) COLOMBO, June 26 (Reuters) -

Sri Lanka signed a deal with creditor nations to restructure about $5.8 billion in bilateral debt, the office of the country's president said on Wednesday, in a move that would help stabilise its crisis-hit economy. Officials from the cash-strapped South Asian nation signed the agreement in Paris with the Official Creditor Committee (OCC), which is co-chaired by Japan, India, and France.

"This agreement grants significant debt relief, allowing Sri Lanka to allocate funds to essential public services & secure concessional financing for its development needs," the president's media office said in a statement. Sri Lanka is also in the process of signing separate bilateral agreements with China EXIM Bank to restructure $4.2 billion of debt, State Minister of Finance Shehan Semasinghe said on social media platform X.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)