Sri Lanka has entered into a bilateral agreement with Denmark as part of its ongoing external debt restructuring efforts.

This milestone highlights Colombo’s strong commitment to restoring debt sustainability and revitalising the national economy.

The agreement follows extensive discussions held after Sri Lanka concluded a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC). Under the terms of the deal, Denmark will provide debt relief by rescheduling outstanding obligations amounting to USD 39 million.

The pact was formally signed by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Sri Lankan Government, and Lars Løkke Rasmussen, Denmark’s Minister for Foreign Affairs.

The Government of Sri Lanka expressed its gratitude to Denmark for its continued cooperation, emphasising that such partnerships are crucial to rebuilding confidence in the country’s fiscal outlook.