Sri Lanka signs $39mn bilateral debt restructuring deal with Australia

Sri Lanka
By Editor_1
Treasury Secretary Harshana Suriyapperuma exchanging documents on bilateral debt restructuring with Matthew Duckworth, High Commissioner Designate of Australia to Sri Lanka on Monday (October 27, 2025) - EN

COLOMBO – The governments of Sri Lanka and Australia have entered into bilateral agreements on the restructuring of US$ 39 million, in a move to restore debt sustainability and revamp its economy, the finance ministry said.

The signing took place on Monday (27) with Treasury Secretary Harshana Suriyapperuma signing on behalf of Sri Lanka. The signed documents were officially exchanged between Suriyapperuma and Matthew Duckworth, High Commissioner Designate of Australia 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 (MoU) reached with the Official Creditor Committee (OCC),” the finance ministry said in a statement.

“Through constructive bilateral discussions, the Government of Australia has agreed to extend debt relief to Sri Lanka by rescheduling outstanding debt obligations,” it added.

The statement also noted that the bilateral agreement not only contributes to Sri Lanka’s path toward economic stability but also strengthens the deep and longstanding relationship between Sri Lanka and Australia.

-economynext.com

Editor_1
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