Saturday Dec 20, 2025
Saturday Dec 20, 2025
Saturday, 20 December 2025 00:36 - - {{hitsCtrl.values.hits}}
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| Treasury Secretary Dr. Harshana Suriyapperuma |
Sri Lanka yesterday crossed a key threshold in its debt restructuring program after the Official Creditor Committee (OCC) formally conveyed its non-objection to the proposed restructuring of $ 170 million in foreign bonds owed by SriLankan Airlines Treasury Secretary Dr. Harshana Suriyapperuma said.
The clearance removes a critical legal and procedural hurdle linked to Government-guaranteed debt and allows Sri Lanka to proceed with final settlement arrangements for the national carrier’s foreign liabilities.
“As advised by the legal experts appointed by the Government, concurrence from the Official Creditor Committee was required for Sri Lanka to proceed based on the approach adopted. We are very grateful and happy to inform that the OCC has formally conveyed its position of no objection,” Dr. Suriyapperuma said.
He said the OCC’s position reflected recognition of the difficult economic and humanitarian conditions faced by Sri Lanka and marked “yet another important milestone” in the country’s restructuring efforts.
“With this development, Sri Lanka has reached well above 90% in terms of restructured values. We are continuously engaging with other governments and stakeholders where the remaining amounts are available, in order to identify possible avenues to finalise those agreements as well,” he added.
Sri Lanka’s debt restructuring is being carried out under the IMF-supported Extended Fund Facility following the sovereign default in 2022, with the objective of restoring debt sustainability across bilateral, multilateral and commercial obligations. The OCC, co-chaired by Japan, France and India, represents the country’s key bilateral creditors and plays a central role in ensuring comparability of treatment across creditor classes, particularly where Government guarantees are involved.
SriLankan Airlines has $ 170 million in outstanding foreign bonds backed by a State guarantee. The Treasury Secretary said the Government had consistently kept markets informed of progress, primarily through disclosures made on the Singapore Exchange, in line with restructuring commitments.
“There are a few more steps in the process. We believe they are procedural and, with the support and blessings of all parties involved, we should be able to complete them within a short period of time,” he said, adding that updates would continue to be shared with the market as they arise.
