Sri Lanka signs $39mn bilateral debt restructuring deal with Australia

The governments of Sri Lanka and Australia have entered into bilateral agreements on the restructuring of USD 39 million, in a move to restore debt sustainability and revamp its economy, the island nation’s Finance Ministry said.

The signing took place on Monday (27) with Treasury Secretary Harshana Suriyapperuma signing on behalf of Sri Lanka. The signed documents were officially exchanged between Suriyapperuma and Matthew Duckworth, High Commissioner Designate of Australia to Sri Lanka.

“These agreements reflect the strong commitment of the Government of Sri Lanka to conclude the external debt restructuring process in a timely manner, following the Memorandum of Understanding (MoU) reached with the Official Creditor Committee (OCC),” the Finance Ministry said in a statement.

“Through constructive bilateral discussions, the Government of Australia has agreed to extend debt relief to Sri Lanka by rescheduling outstanding debt obligations.”

“This bilateral agreement not only contributes to Sri Lanka’s path toward economic stability but also strengthens the deep and longstanding relationship between Sri Lanka and Australia.”