Sri Lanka, India’s EXIM Bank signs debt restructuring agreements worth USD 930mn

The bilateral amendatory agreements have been signed between the Government of Sri Lanka and the Export – Import Bank (EXIM) of India pertaining to the Line of Credits and Buyer’s Credit Loan Agreements under the External Debt Restructuring Process of Sri Lanka.
 
Issuing a statement in this regard, the Ministry of Finance, Planning and Economic Development said the signing of bilateral amendatory agreements in relation to the present External Debt Restructuring Process is a significant milestone of External Debt Restructuring of Sri Lanka.
 
The Government of India has played a pivotal role in spearheading Sri Lanka’s External Debt Restructuring Process, co-chairing the Official Creditor Committee alongside France and Japan, the Finance Ministry said in the statement.
 
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 statement mentioned.
 
The signing of bilateral amendatory agreements pertaining to Line of Credits and Buyer’s Credit Agreements took place in March and April. The total amount of restructured seven Line of Credit and four Buyers Credit Facility agreements with the government of India is approximately USD 930.8 million, according to the Finance Ministry.
 
Secretary of the Ministry of Finance, Planning, and Economic Development K.M. Mahinda Siriwardana signed the agreements on behalf of the Government of Sri Lanka, and Nirmit Ved, General Manager of the EXIM Bank of India signed the Line of Credits while Amith Kumar, Deputy General Manager of the EXIM Bank India signed the Buyer’s Credit Agreements.
 
The conclusion of the bilateral Amendment Agreements will certainly pave the way to developing further the deep and long standing bilateral relationships between the Government of India and the Government of Sri Lanka, the Finance Ministry added.