Sri Lanka Signs USD 39 Million Debt Restructuring Deal with Australia

Sri Lanka and Australia have officially entered into bilateral agreements on external debt restructuring, marking a significant step forward in Sri Lanka’s efforts to achieve long-term debt sustainability and strengthen its economy, the Ministry of Finance announced yesterday.

The agreements were signed by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of Sri Lanka, and exchanged with Matthew Duckworth, Australia’s High Commissioner Designate to Sri Lanka.

“These agreements reflect the strong commitment of the Government of Sri Lanka to conclude the external debt restructuring process in a timely manner, following the Memorandum of Understanding reached with the Official Creditor Committee,” the Finance Ministry stated.

Under the new arrangements, Australia has agreed to extend debt relief to Sri Lanka by rescheduling outstanding obligations, with the total debt restructured estimated at approximately USD 39 million.

The Ministry emphasized that this bilateral deal not only supports Sri Lanka’s journey toward economic stability and fiscal recovery but also reinforces the long-standing diplomatic and economic partnership between the two nations.