Sri Lanka to Save Billions in Debt Write-Off

Sri Lanka is set to save $3 billion in debt write-offs from commercial creditors following a provisional deal to restructure its international bonds. The country also secured an agreement to restructure $10 billion in bilateral debt with nations including Japan, India, and China, resulting in $5 billion in interest savings.

Sri Lanka is on the verge of a major financial relief as the country will save $3 billion through debt write-offs from commercial creditors. This follows a provisional arrangement to restructure international bonds amounting to $12.5 billion. President Ranil Wickremesinghe confirmed this significant step in Sri Lanka's recovery from a debilitating financial crisis.

In addition, the island nation recently reached an agreement with key creditor countries such as Japan, India, and China to restructure $10 billion in bilateral debt. The restructuring initiative is expected to save Sri Lanka an additional $5 billion in interest payments, further easing the financial burden on the nation.

With total external debt amounting to $37 billion, these measures mark critical milestones in Sri Lanka's efforts to stabilize its economy and restore financial health.

(With inputs from agencies.)