France and Sri Lanka on Monday signed a bilateral agreement to implement the terms of the Memorandum of Understanding (MoU) reached on June 26, 2024, with Sri Lanka’s Official Creditors Committee, co-chaired by France, India, and Japan.
The agreement reschedules €390 million of Sri Lanka’s debt until 2042, providing a five-year grace period and a cap on original interest rates. It aligns with the coordinated international effort to restore Sri Lanka’s debt sustainability, following the country’s 2022 economic crisis.
The agreement was signed on June 16 by William Roos, Assistant Secretary for Multilateral Affairs, Trade and Development at the French Treasury, and Finance Ministry Secretary Mahinda Siriwardana. The signing took place in the presence of French Ambassador Rémi Lambert, Deputy Finance Minister Dr. Harshana Suriyapperuma, and Central Bank Governor Dr. Nandalal Weerasinghe.
Officials said the agreement supports the implementation of the IMF’s multi-year €2.8 billion financing programmeand ensures compliance with the principle of comparability of treatment among all creditors, including third-party lenders.
France reaffirmed its continued support for Sri Lanka’s economic recovery and reform agenda, viewing the agreement as a key milestone in strengthening bilateral relations and fostering long-term financial stability.
