Sri Lanka has formalised a series of debt restructuring deals with the Export-Import Bank of India, covering credit lines and buyer’s credit facilities worth approximately US$ 930.8 million, the Finance Ministry said yesterday.
The Bilateral Amendatory Agreements is part of Sri Lanka’s broader efforts to address its external debt obligations. The agreements were signed on 25 March and 3 April, according to the ministry.
The restructuring covers seven Lines of Credit and four Buyer’s Credit Agreements extended by the Indian government.
“The conclusion of the bilateral Amendment Agreements will certainly pave the way to developing further the deep and longstanding bilateral relationships between the Government of India and the Government of Sri Lanka,” the Finance Ministry said in a statement.
Sri Lanka’s Treasury Secretary Mahinda Siriwardana signed the agreements on behalf of the government, while EXIM Bank of India General Manager Nirmit Ved and Deputy General Manager Amith Kumar represented the lender in signing the Line of Credit and Buyer’s Credit agreements respectively.
India has played a pivotal role in steering Sri Lanka’s external debt restructuring process, the ministry acknowledged.
“The leadership, commitment, and constructive engagement of the Government of India with the support of needy emergency assistance during the peak of the crisis was instrumental for Sri Lanka to navigate the challenges of economic recovery and also to make a remarkable progress towards the restoring of debt sustainability,” the ministry said.