Sri Lanka Secures Key Debt Restructuring Deal with Japan Amid Economic Recovery

Sri Lanka has received cabinet approval to finalize a debt restructuring deal with Japan, part of efforts to stabilize its economy following a severe crisis in 2022. The agreement is crucial for Sri Lanka to complete its debt restructuring process and fully benefit from IMF support.

In a significant development for Sri Lanka's economic recovery, the country's cabinet has approved finalizing a debt restructuring deal with Japan. This follows a preliminary agreement made last June with key bilateral lenders.

This step marks progress in Sri Lanka's path to completing its debt restructuring process and recovering from the severe financial crisis it faced in 2022. According to Cabinet spokesperson Nalinda Jayatissa, the deal is essential for the nation to rebuild its economy.

Sri Lanka owes Japan $2.52 billion and seeks similar agreements with China and India to progress through the IMF's program. Recent talks between the Chinese and Sri Lankan presidents have strengthened investment ties, contributing to ongoing economic cooperation.

(With inputs from agencies.)