Paris [France], Sri Lanka on Wednesday sealed the $5.8 billion debt restructuring deal with the Official Committee of Creditors (OCC), in a major step towards its recovery from the 2022 financial crisis.
The OCC, the group of creditor nations including India, was launched on April 13, 2023 to hold talks among Sri Lanka's bilateral creditors to finalize a debt restructuring plan for Sri Lanka, following approval by the IMF Expanded Fund Facility (SEF Program). for Sri Lanka on March 20, 2023.
"After several rounds of engagements, the OCC signed the Memorandum of Understanding (MoU) on debt restructuring on June 26, 2024. This milestone demonstrates the strong progress made by Sri Lanka in stabilizing its economy and advancing towards reform and growth," the Ministry of Foreign Affairs said in a press release.
As one of the co-chairs of the OCC, along with France and Japan, India has remained steadfast in its commitment to the stabilization, recovery and growth of Sri Lanka's economy.
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 funding guarantees to the IMF, paving the way for Sri Lanka to secure the IMF programme.
"India will continue to support Sri Lanka's economic recovery, including by promoting long-term investments in its key economic sectors," the statement added.
Sri Lankan President Ranil Wickremesinghe said international confidence in the country is reaffirmed as bilateral creditors have reached an agreement that serves as a kind of international backstop, the Sri Lanka-based Daily Mirror reported. He also expressed gratitude to lending nations, including India.
"The road to this point has not been easy. We have traveled a difficult and arduous path. Our ministers and officials have worked tirelessly to achieve this goal. The majority of our citizens have supported us with patience and resilience, enduring various difficulties. Despite of the current challenges, we have persevered," he said in his televised speech Wednesday.
"I extend my gratitude to our creditors, including China and the Exim Bank of China, India, Japan and France, who co-chair the Official Creditors Committee. I also thank the other members of the committee and the Paris Club Secretariat for their support. for these negotiations to be successful," Wickremesinghe added.
Sri Lanka defaulted on its foreign debt in April 2022 after running out of foreign currency and the worst economic crisis forced then-president Gotabaya Rajapaksa to resign.
The OCC, the group of creditor nations including India, was launched on April 13, 2023 to hold talks among Sri Lanka's bilateral creditors to finalize a debt restructuring plan for Sri Lanka, following approval by the IMF Expanded Fund Facility (SEF Program). for Sri Lanka on March 20, 2023.
"After several rounds of engagements, the OCC signed the Memorandum of Understanding (MoU) on debt restructuring on June 26, 2024. This milestone demonstrates the strong progress made by Sri Lanka in stabilizing its economy and advancing towards reform and growth," the Ministry of Foreign Affairs said in a press release.
As one of the co-chairs of the OCC, along with France and Japan, India has remained steadfast in its commitment to the stabilization, recovery and growth of Sri Lanka's economy.
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 funding guarantees to the IMF, paving the way for Sri Lanka to secure the IMF programme.
"India will continue to support Sri Lanka's economic recovery, including by promoting long-term investments in its key economic sectors," the statement added.
Sri Lankan President Ranil Wickremesinghe said international confidence in the country is reaffirmed as bilateral creditors have reached an agreement that serves as a kind of international backstop, the Sri Lanka-based Daily Mirror reported. He also expressed gratitude to lending nations, including India.
"The road to this point has not been easy. We have traveled a difficult and arduous path. Our ministers and officials have worked tirelessly to achieve this goal. The majority of our citizens have supported us with patience and resilience, enduring various difficulties. Despite of the current challenges, we have persevered," he said in his televised speech Wednesday.
"I extend my gratitude to our creditors, including China and the Exim Bank of China, India, Japan and France, who co-chair the Official Creditors Committee. I also thank the other members of the committee and the Paris Club Secretariat for their support. for these negotiations to be successful," Wickremesinghe added.
Sri Lanka defaulted on its foreign debt in April 2022 after running out of foreign currency and the worst economic crisis forced then-president Gotabaya Rajapaksa to resign.
