Saturday May 16, 2026
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Sri Lanka and South Korea have signed debt restructuring amendment agreements covering 18 concessional loans worth around $ 267 million, marking a further step in Colombo’s broader external debt restructuring process while reaffirming bilateral development cooperation between the two countries.
The two countries have reaffirmed their development partnership following the successful conclusion of the Economic Development Cooperation Fund (EDCF) Policy Dialogue 2026.
The high-level dialogue, held on 28 April at the Randora Auditorium of the Finance Ministry, was jointly chaired by the Government of Sri Lanka and the Republic of Korea, serving as a key platform to review bilateral development cooperation, assess the progress of ongoing infrastructure projects, and align future development priorities amid Sri Lanka’s economic recovery efforts.
A major outcome of the meeting was the formal exchange of signed debt restructuring amendment agreements covering 18 EDCF loans amounting to around $ 267 million.
The move marks an important administrative milestone in sustaining development financing, while supporting Sri Lanka’s broader debt restructuring program.
The discussions also included presentations by the National Planning Department (NPD) and the External Resources Department (ERD), which outlined the country’s National Development Plan and provided updates on the progress of external debt restructuring and economic reforms.
The South Korean delegation, meanwhile, presented its international development cooperation framework for 2026–2030, including its medium-term operational strategy aimed at aligning EDGC assistance with Sri Lanka’s recovery and long-term development priorities.
The delegates engaged in detailed technical discussions regarding major projects currently supported by the EDCF financing.
The discussion on the extension of the current EDCF Framework Arrangement (F/A) entered in 2018, which provides the legal and financial foundation for Korean concessional loans to Sri Lanka, was also one of the key highlights of the dialogue.
The proceedings concluded with the signing of a Minutes of Dialogue (MOD), signalling a shared vision for future cooperation.
The Korean delegation was led by the Ministry of Economy and Finance (MOEF), including Byoungseok Choi and Myeonghui Hwang, alongside representatives from the Export-Import Bank of Korea (KEXIM) headed by Director Daehee Kim. The Sri Lankan delegation was led by Treasury Secretary Dr. Harshana Suriyapperuma, senior officials from various departments of the Finance, Planning and Economic Development Ministry, the relevant line Ministries, and various Project Executing Agencies of the projects considered during the dialogue.
