New Delhi, India on Wednesday welcomed Sri Lanka's debt restructuring deal with a group of creditor nations and said it will continue to support the island nation's economic recovery, including by promoting long-term investments.
India is one of the co-chairs of the Official Committee of Creditors (OCC) that was formed in April last year to finalize a debt restructuring plan for Sri Lanka.
Sri Lanka's government said it has finalized a long-delayed $5.8 billion debt restructuring deal with its bilateral lenders, including India and China.
"After several rounds of engagements, the OCC signed the Memorandum of Understanding (MoU) on debt restructuring on June 26," the Ministry of External Affairs (MEA) said.
He said this milestone demonstrates the strong progress made by Sri Lanka in stabilizing its economy and moving towards reform and growth.
"As one of the co-chairs of the OCC, along with France and Japan, India has been steadfast in its commitment to the stabilization, recovery and growth of Sri Lanka's economy," he said.
"This was also demonstrated by India's unprecedented financial support of $4 billion to Sri Lanka. India was also the first creditor nation to convey financing guarantees to the IMF (International Monetary Fund), paving the way for for Sri Lanka to underwrite the IMF programme." the MEA said in a statement.
It said: "India will continue to support Sri Lanka's economic recovery, including by promoting long-term investments in its key economic sectors."
Following the IMF's approval of the Extended Fund Facility (ESAF programme) for Sri Lanka on March 20 last year, the OCC was launched to hold talks between the island nation's bilateral creditors to finalize a restructuring plan for its debt.
Sri Lanka witnessed a severe economic crisis in 2022. The decline in its foreign exchange reserves led the country to default on its external debt. India and many other countries provided help to Sri Lanka to cope with the situation.
India is one of the co-chairs of the Official Committee of Creditors (OCC) that was formed in April last year to finalize a debt restructuring plan for Sri Lanka.
Sri Lanka's government said it has finalized a long-delayed $5.8 billion debt restructuring deal with its bilateral lenders, including India and China.
"After several rounds of engagements, the OCC signed the Memorandum of Understanding (MoU) on debt restructuring on June 26," the Ministry of External Affairs (MEA) said.
He said this milestone demonstrates the strong progress made by Sri Lanka in stabilizing its economy and moving towards reform and growth.
"As one of the co-chairs of the OCC, along with France and Japan, India has been steadfast in its commitment to the stabilization, recovery and growth of Sri Lanka's economy," he said.
"This was also demonstrated by India's unprecedented financial support of $4 billion to Sri Lanka. India was also the first creditor nation to convey financing guarantees to the IMF (International Monetary Fund), paving the way for for Sri Lanka to underwrite the IMF programme." the MEA said in a statement.
It said: "India will continue to support Sri Lanka's economic recovery, including by promoting long-term investments in its key economic sectors."
Following the IMF's approval of the Extended Fund Facility (ESAF programme) for Sri Lanka on March 20 last year, the OCC was launched to hold talks between the island nation's bilateral creditors to finalize a restructuring plan for its debt.
Sri Lanka witnessed a severe economic crisis in 2022. The decline in its foreign exchange reserves led the country to default on its external debt. India and many other countries provided help to Sri Lanka to cope with the situation.
