COLOMBO : Export Finance Australia and the Government of Sri Lanka have signed a bilateral agreement on Monday, Oct. 27, on external debt restructuring, marking a significant milestone in Sri Lanka’s ongoing efforts to restore debt sustainability and revitalise its economy.
Australia has been a steadfast supporter of the Government of Sri Lanka’s efforts to restructure its debt, following the temporary suspension of external debt repayments in April 2022. As a member of the Official Creditor Committee (OCC) of the Paris Club, Australia co-signed the initial Memorandum of Understanding in June 2024, enabling further payments to Sri Lanka under the International Monetary Fund’s extended fund facility.
Having engaged in constructive bilateral discussions over several months, Export Finance Australia finalised debt relief to Sri Lanka. The total debt restructured under this agreement is estimated at approximately AUD 60 million (USD 39 million).
The signing of the amendment agreement took place at the Ministry of Finance, Colombo. Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, signed the agreement on behalf of the Government of Sri Lanka. The signed document was officially exchanged between Dr. Suriyapperuma and H.E. Matthew Duckworth, High Commissioner-designate of Australia to Sri Lanka.
This bilateral agreement not only contributes to Sri Lanka’s path toward economic stability but also reinforces the deep and longstanding relationship between Sri Lanka and Australia. The Government of Australia congratulates the Government of Sri Lanka on its efforts toward successful debt restructuring and economic recovery.
