Sri Lanka has signed a bilateral agreement with France to reschedule €390 million in debt, extending repayments until 2042 with a five-year grace period and a cap on original interest rates.
The deal was formalized by Treasury Secretary K. M. Mahinda Siriwardana and William Roos, Assistant Secretary at France’s Directorate-General of the Treasury, representing the French government.
France, Sri Lanka’s fourth-largest public creditor, has been a key player in the island’s debt restructuring efforts, co-chairing the Official Creditor Committee with Japan and India.
In a statement, the Finance Ministry hailed France’s “leadership, commitment, and constructive engagement,” crediting it with helping Sri Lanka advance toward debt sustainability and economic recovery.
France has played a key role in Sri Lanka’s debt restructuring journey, co-chairing the Official Creditor Committee alongside Japan and India. Its leadership and constructive engagement have been instrumental in helping Sri Lanka navigate the complexities of economic reform and recovery.
The Ministry of Finance emphasized that this spirit of cooperation has enabled GoSL to make meaningful progress toward restoring debt sustainability.
It added that the conclusion of the Exchange of Notes and signing of the Agreement will certainly pave the way to developing further the deep and longstanding bilateral relationships between the Government of French and the Government of Sri Lanka.
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