Sri Lanka, Australia enter into bilateral agreements on external debt restructuring

Source : dailymirror

The Government of Sri Lanka and the Government of Australia have entered into bilateral agreements on external debt restructuring, marking a significant milestone in Sri Lanka’s ongoing efforts to restore debt sustainability and revamp its economy, Ministry of Finance, Planning and Economic Development said.

These agreements reflects 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).

A statement issued by the Ministry said through constructive bilateral discussions, the Government of Australia has agreed to extend debt relief to Sri Lanka by rescheduling outstanding debt obligations. 

“The total debt restructured under these agreements is estimated at approximately USD 39 million.

The signing of the agreements took place on 27 October 2025, at the Ministry of Finance. Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, signed the agreements on behalf of the Government of Sri Lanka. The signed documents were officially exchanged between Dr. Suriyapperuma and H.E. Matthew Duckworth, High Commissioner Designate of Australia to Sri Lanka.

This 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. The Government of Sri Lanka extends its sincere appreciation to the Government of Australia for its continued support and cooperation,” the Ministry said.