Sri Lanka Secures Debt Rescheduling with France in Economic Revival Push
Sri Lanka has inked a pivotal agreement with France to reschedule a €390 million debt until 2042, marking a step towards economic recovery. This deal was essential for securing IMF assistance and is part of a larger debt restructuring effort aiming to restore the nation's financial health.
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- Sri Lanka
Sri Lanka has formalized an agreement with France to reschedule a €390 million debt stock until 2042, as announced by the Ministry of Finance. The agreement, signed on Monday, is a critical milestone in the country's efforts to rejuvenate its economy.
The Ministry lauded the bilateral Agreement with France, underlining it as a testament to Sri Lanka's determination to swiftly conclude the debt restructuring process, thereby revamping its economy and instating debt sustainability.
France, along with Japan and India, played a crucial role as one of Sri Lanka's largest public creditors in facilitating the necessary restructuring to secure International Monetary Fund (IMF) assistance. This initiative aligns with the IMF's $2.9 billion reform-based fund aimed at aiding Sri Lanka's recovery from a historic financial crisis that led to a sovereign default and political upheaval in 2022.
(With inputs from agencies.)
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