Sri Lanka finalises debt restructure agreement with official creditor committee

After the International Monetary Fund’s (IMF) approval of an extended fund facility for Sri Lanka in March 2023, the OCC was launched the following month to hold talks among the country’s bilateral creditors to finalise a plan for restructuring debt.

After several rounds of engagements, the OCC – which is co-chaired by India, France and Japan – signed a memorandum of understanding (MoU) on debt restructuring on Wednesday. “This milestone demonstrates the strong progress made by Sri Lanka in stabilising its economy and moving towards reform and growth,” the external affairs ministry said in a statement.

“India will continue to support Sri Lanka’s economic recovery, including by promoting long-term investments in its key economic sectors,” it said.