Economy & Growth

Sri Lanka signs debt treatment agreement with China’s EXIM Bank

Sri Lanka signed debt treatment agreements with Export-Import Bank of China (EXIM) in Beijing, a short while ago, to restructure USD 4.2 billion of debt, the President’s Media Division said.

The Framework Agreement related to this was signed between Sri Lanka and China in Colombo, Sri Lanka.

This restructuring provides significant debt relief, allowing Sri Lanka to allocate more funds to essential public services and resume concessional financing for critical infrastructure development, the PMD added.

State Minister of Finance Shehan Semasinghe also confirmed that Sri Lanka signed debt treatment agreement with the Export-Import Bank of China to restructure USD 4.2 billion of its debt.

“This move is part of an ongoing effort to manage the country’s financial challenges. The framework agreement for this debt treatment was signed between Sri Lanka and China in Colombo,” he posted on ‘X’.

He stated that this debt treatment agreement is a crucial step for Sri Lanka in stabilizing its economy and addressing its debt crisis.