Saturday Aug 23, 2025
Saturday Aug 23, 2025
Saturday, 23 August 2025 00:33 - - {{hitsCtrl.values.hits}}
British High Commissioner Andrew Patrick (left) and Treasury Secretary
Dr. Harshana Suriyapperuma
The British High Commission in Colombo yesterday said that a bilateral debt agreement was reached between Sri Lanka and the UK, which will allow the island nation to resume interest payments with a grace period to repay the main debt amount until 2028.
British High Commissioner Andrew Patrick and Treasury Secretary Dr. Harshana Suriyapperuma signed the bilateral debt agreement between the UK and Sri Lanka at the Finance, Planning and Economic Development Ministry yesterday.
“The bilateral agreement implements the terms of the debt restructuring agreement reached in June 2024 between Sri Lanka and an Official Creditor Committee co-chaired by France, India, and Japan, including the UK and other Paris Club creditors,” a statement from the UK High Commission said.
High Commissioner Patrick said: “We are delighted to sign the UK’s bilateral debt agreement with Sri Lanka. This important milestone is a key step to restore debt sustainability and regain investor confidence to support Sri Lanka’s economic recovery.”
The agreement enables interest payments to UK Export Finance (UKEF) to resume immediately, with a grace period on principal repayments until 2028. Once the first interest payments from Sri Lanka are received, UKEF will start the process of reassessing its cover position for Sri Lanka, the statement said
“The agreement restores debt sustainability and helps Sri Lanka regain access to international investment, supporting its recovery from the 2022 economic crisis and providing crucial breathing space for the country’s economic recovery.”
The full text of the agreement will be published in the Treaty Series in due course, the UK High Commission said.
