Sri Lanka’s President Ranil Wickremesinghe announced that debt restructuring agreements were finalised with bilateral lenders, including India and China, in Paris, describing the development as a “significant milestone” that will bolster international trust in the cash-strapped island nation. In a televised address to the nation, President Wickremesinghe, who also holds the portfolio as the finance minister, said that Prime Minister Dinesh Gunawardena will present these agreements to Parliament on July 2 for ratification.“In Paris, Sri Lanka reached a final agreement with our official bilateral creditors. Similarly, we signed another agreement with China’s Exim Bank today in Beijing… Sri Lanka won….!!” said a jubilant Wickremesinghe, who has steered the effort to take the island out of the economic crisis since Sri Lanka declared its first-ever sovereign default in 2022.
Describing the development as a “significant milestone”, the president said, “With these agreements, we will be able to defer all bilateral loan instalment payments until 2028. Furthermore, we will have the opportunity to repay all the loans on concessional terms, with an extended period until 2043.” He extended his gratitude to creditors, including China and the Exim Bank of China, India, Japan, and France, who co-chair the Official Creditors Committee.