Sri Lanka and the United Kingdom signed a bilateral debt agreement on Friday (22nd of August), marking the implementation of the debt restructuring terms agreed with the Official Creditor Committee in June 2024.
The agreement was signed by British High Commissioner Andrew Patrick and Finance Ministry Secretary Dr. Harshana Suriyapperuma. Under the deal, Sri Lanka will resume interest payments, while principal repayments will be deferred until 2028.
The restructuring arrangement covers UK Export Finance (UKEF) and forms part of the broader debt restructuring initiative co-chaired by France, India, Japan, and other Paris Club members.
Commenting on the agreement, British High Commissioner Andrew Patrick said it was a “key step to restore debt sustainability and regain investor confidence to support Sri Lanka’s economic recovery.”
