Sri Lanka and France finalise bilateral debt restructuring agreement

Saturday, 26 July 2025 03:50 - - {{hitsCtrl.values.hits}}

Sri Lanka has officially concluded its bilateral debt restructuring process with France, following the signing of the final implementation letters between the two governments. This marks a significant milestone in Sri Lanka’s broader external debt restructuring effort, in line with the Memorandum of Understanding (MoU) signed with the Official Creditor Committee (OCC) on 26 June 2024.

The bilateral agreement between the Government of Sri Lanka and the Government of France was signed on 16 June 2025. As per the agreement, the Finance, Planning and Economic Development Ministry representing the Government of Sri Lanka was required to finalise implementation letters with the relevant French agencies executing the terms of the agreement.

The formal signing of the implementation letter with Agence Française de Développement (AFD) took place on Thursday (24) at the Ministry premises.

The letter was signed by Finance, Planning and Economic Development Ministry Secretary Dr. Harshana Suriyapperuma and AFD Country Director Yazid Bensaïd on behalf of the Government of France.

Subsequent implementation letters were also signed with Bpifrance Assurance Export and the Banque de France, completing all procedural formalities required under the bilateral arrangement.

With these signings, the debt restructuring process between Sri Lanka and France is officially concluded. This development now paves the way for the resumption of previously suspended loan disbursements and opens the door to new financing from French lending agencies, enabling the continuation and initiation of vital development projects across Sri Lanka.

The agreement with France forms part of Sri Lanka’s ongoing efforts to restore macroeconomic stability and debt sustainability following its 2022 debt default, the first in the country’s history.

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