Sri Lanka Nears Completion of $12.5 Billion Debt Restructuring Amidst Strategic Balancing Act

Sri Lanka aims to conclude $12.5 billion debt restructuring talks within weeks, marking a critical step in overcoming its severe financial crisis. The nation is also striving to maintain balanced relations with India and China, its main creditors and geopolitical influencers. The restructuring is expected to save $8 billion and delay capital repayments by four years, enabling economic growth and stalled development projects.

Sri Lanka is on the brink of finalizing its $12.5 billion debt restructuring within the next few weeks, as Foreign Minister Ali Sabry confirmed on Tuesday. This decisive measure could help the island nation break free from a prolonged financial downturn.

Sabry emphasized Sri Lanka's commitment to maintaining balanced diplomatic ties with India and China, both crucial creditors and investors, while also significant geopolitical players in the region.

The restructuring, which aims to save $8 billion in write-offs, is expected to delay capital repayments by at least four years, facilitating economic recovery and the revival of stalled development projects.

(With inputs from agencies.)