Fireworks were heard around Colombo as President Ranil Wickremesinghe began his special statement a short while ago today (26).
In his special statement, President Ranil Wickremesinghe announced that today, debt restructuring agreements were finalized with Sri Lanka’s official creditors in Paris and with the Chinese Exim Bank in Beijing.
He emphasized that this development is a significant milestone, bringing good news to all who cherish the country.
He further announced that debt restructuring agreements will postpone all bilateral loan payments to foreign countries until 2028, adding that Sri Lanka will have until 2043 to repay these loans on concessional terms.
The President highlighted that in 2022, Sri Lanka allocated 9.2% of its GDP to foreign debt payments. However, with ongoing efforts, this percentage is expected to decrease to less than 4.5% between 2027 and 2032, reflecting significant fiscal improvement
President Ranil Wickremesinghe highlighted that following Sri Lanka’s official declaration of its inability to repay loans, all transactions & foreign-funded development projects were suspended. He emphasized that the successful debt restructuring now paves the way to resume these projects and transactions .
Emphasizing that agreements with bilateral creditors bolster international trust in Sri Lanka, the President noted that the global community, which previously rejected the country’s Letters of Credit, now offers assurances regarding Sri Lanka’s credibility.
President Ranil Wickremesinghe expressed gratitude to all parties involved, including ministers, officials and the majority of the people who patiently supported the country through challenging times.
