India Backs Sri Lanka's Debt Restructuring Deal for Economic Revival

India welcomed Sri Lanka's debt restructuring agreement with creditor nations and pledged ongoing support for its economic recovery. As a co-chair of the Official Creditors Committee, India has been instrumental in the process, including through significant financial aid and promoting long-term investments.

India on Wednesday welcomed Sri Lanka's debt restructuring agreement with a group of creditor nations, pledging continued support for the island nation's economic recovery, notably through long-term investments.

India, a co-chair of the Official Creditors Committee (OCC) formed last year, has played a key role in finalizing a debt restructuring plan. The Sri Lankan government announced it has secured a $5.8 billion debt restructuring deal with bilateral lenders, including India and China.

The Ministry of External Affairs (MEA) stated, 'After several rounds of engagements, the OCC signed the Memorandum of Understanding (MoU) on debt restructuring on June 26,' adding that this milestone exemplifies Sri Lanka's progress in stabilizing its economy. The MEA highlighted India's role, mentioning its unprecedented $4 billion financial support and its early assurances to the IMF, which facilitated Sri Lanka's IMF program.

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