The Government of Sri Lanka has reached a major milestone in its ongoing external debt restructuring process by signing Bilateral Amendatory Agreements with the Export-Import Bank (EXIM) of India, amounting to approximately $930.8 million. The agreements were finalized during two signing ceremonies held on 25 March and 3 April, involving senior officials from both nations.
These agreements cover the restructuring of seven Lines of Credit and four Buyer’s Credit Facilities, offering critical relief as Sri Lanka works to stabilize its economy after a severe financial crisis.
Representing Sri Lanka, Finance, Planning, and Economic Development Ministry Secretary Mahinda Siriwardana signed the agreements, while EXIM Bank of India General Manager Nirmit Ved and Deputy General Manager Amith Kumar signed on behalf of the Indian side.
In an official statement, Sri Lanka’s Finance Ministry described the signing as a key step in strengthening the “deep and longstanding” bilateral relationship between the two countries. It also acknowledged India’s central role in supporting Sri Lanka’s recovery, particularly during the height of the economic crisis.
India has not only co-chaired the Official Creditor Committee (OCC) with France and Japan but also extended emergency financial assistance to help Sri Lanka navigate through its fiscal challenges. The Ministry credited India’s leadership and constructive engagement as instrumental in helping the country regain stability and move toward sustainable debt levels.
The restructuring agreements with EXIM Bank are part of broader efforts by Sri Lanka to realign its external debt obligations with more manageable terms, following a historic default in 2022. These efforts are also tied to broader reforms under the guidance of international financial institutions.
Observers view the latest agreement as more than just a financial arrangement. It is also seen as a diplomatic achievement that reinforces regional cooperation and showcases India’s commitment to supporting its neighbor’s economic recovery.With these new terms in place, Sri Lanka is expected to gain increased fiscal breathing room to continue its economic reforms and development agenda. The move is anticipated to bolster investor confidence and further solidify India’s standing as a key strategic partner in the region
