Sri Lanka Finalizes $5.8 Billion Debt Restructuring with India, Japan, China to Secure IMF Bailout

Jun 26, 2024, 12:52 AM

Sri Lanka has reached a significant milestone in its efforts to stabilize its economy by finalizing debt restructuring agreements with multiple bilateral lenders. On June 26, Sri Lanka signed deals with creditor nations including India, Japan, and China to restructure approximately $5.8 billion in bilateral debt. These agreements, which were finalized in Paris, are a crucial step in meeting the conditions for an International Monetary Fund (IMF) bailout. President Ranil Wickremesinghe expressed gratitude towards India for its continued support and highlighted the joint initiatives cementing the partnership between the two nations. The Sri Lankan government has been negotiating with the Paris Club, India, and China since declaring a sovereign default in 2022, with in-principle deals reached last year. The finalized agreements are expected to provide significant debt relief and further stabilize Sri Lanka's crisis-hit economy.