In a major development within Sri Lanka’s external debt restructuring journey, the country officially signed a bilateral debt agreement with France on Monday (June 16) in Colombo, according to the Ministry of Finance.
Representing the Sri Lankan government, Treasury Secretary Mahinda Siriwardana inked the deal, while William Roos, Assistant Secretary of Multilateral Affairs from the French Treasury, signed on behalf of France.
The Finance Ministry highlighted this agreement as a vital indicator of Sri Lanka’s dedication to swiftly concluding its debt restructuring program to restore debt sustainability and rejuvenate the national economy.
France, along with Japan and India, played a prominent role in co-chairing Sri Lanka’s Official Creditor Committee (OCC), guiding the country through complex negotiations to restructure its foreign debt. The Ministry praised France’s leadership and constructive involvement, emphasizing that such collaborative efforts have enabled significant progress in stabilizing Sri Lanka’s finances.
This agreement also signals an intention to deepen longstanding diplomatic and economic ties between France and Sri Lanka.
The French Embassy noted that 2023 marked a high point in bilateral relations, as leaders of both countries engaged in frequent high-level discussions. French President Emmanuel Macron and Sri Lankan President Ranil Wickremesinghe met three times during the year—in Paris during the Summit for a New Global Financing Pact in June, in Colombo in July, and again in October on the sidelines of COP28 in Dubai.
Notably, 2023 also saw the first formal political dialogue between the two nations, held in Colombo in October. The second edition of these top-level talks is scheduled to take place in France later in 2024, further strengthening political cooperation.
France, Sri Lanka’s fourth-largest official bilateral creditor, has been instrumental in uniting the creditor community. A key milestone was reached in June 2023 when negotiations culminated in Paris with a joint agreement signed by the OCC co-chairs and China’s Exim Bank. This agreement was formalized at the French Ministry of Economy and Finance during the 11th Paris Forum.
The latest bilateral pact enables France to expand its development cooperation in Sri Lanka. According to the Finance Ministry, French agencies such as AFD (Agence Française de Développement), the Economic Department, and the Embassy’s Cooperation and Cultural Action Department have consistently supported Sri Lanka—even during periods of economic turmoil.
The agreement stands as a testament to international solidarity and France’s enduring commitment to Sri Lanka’s recovery, paving the way for enhanced collaboration across economic, political, and cultural sectors.
