India welcomes Sri Lanka’s debt restructuring agreement

India welcomes Sri Lanka’s debt restructuring agreement

New Delhi, June 26: India on Wednesday welcomed Sri Lanka’s debt restructuring agreement with a group of creditor nations and said New Delhi has been steadfast in its commitment to the stabilization, recovery and growth of the Sri Lankan economy.

India is one of the co-chairs of the Official Creditors Committee (OCC) that was formed in April 2023 to finalise a plan for restructuring Sri Lanka’s debt.

The MEA spokesperson posted on X:

“We congratulate the Government of Sri Lanka for the signing of the MoU between the Official Creditors Committee & Sri Lanka on debt restructuring. This signifies the progress made by Sri Lanka in its economic stabilisation & recovery.

“India is steadfast in its commitment to Sri Lanka’s growth and prosperity, demonstrated by the unprecedented assistance of USD 4 billion as well as the role played by India as the co-chair of the OCC.”

An official statement said: “Following the approval by the IMF for the Extended Fund Facility (EFF Programme) for Sri Lanka on 20 March 2023, the Official Creditors Committee (OCC) was launched on 13 April 2023 to hold talks among Sri Lanka’s bilateral creditors to finalize a plan for restructuring Sri Lanka’s debt.

“After several rounds of engagements, the OCC signed the Memorandum of Understanding (MoU) on debt restructuring on 26 June 2024. This milestone demonstrates the strong progress made by Sri Lanka in stabilizing its economy and moving towards reform and growth.

“As one of the Co-Chairs of the OCC, along with France and Japan, India has been steadfast in its commitment to the stabilization, recovery and growth of the Sri Lankan economy. This was also demonstrated by India’s unprecedented financial support of USD 4 billion to Sri Lanka. India was also the first creditor nation to convey financing assurances to IMF which paved the way for Sri Lanka to secure the IMF programme.

“India will continue to support Sri Lanka’s economic recovery including by promoting long-term investments in its key economic sectors.”

Sri Lanka Foreign Minister Ali Sabry in a note of heartfelt thanks on X said:

“Heartfelt Thank You to Our Global Partners**

“To our friends and partners across the world,

Today, I share a message of profound gratitude and hope on behalf of Sri Lanka. Our journey to economic recovery has been incredibly challenging, but your unwavering support and cooperation have made a world of difference.

“To India, the Paris Club, Japan, China, and all non-Paris Club members, thank you for your steadfast commitment. Your agreement to our debt restructuring plan unlocked vital IMF facilities. Now, with the recent agreements to restructure our bilateral debts, we are confidently on the path to restoring our debt sustainability.

“This remarkable progress reflects your friendly and cooperative spirit. Your solidarity during our darkest hours has provided a beacon of hope for all Sri Lankans. Your partnership is helping us build a stronger and more resilient economy.

“From the depths of our hearts, we extend our sincere thanks for your continued support and belief in our future. Together, we are transforming Sri Lanka’s destiny and fostering a brighter tomorrow.

“With heartfelt gratitude “

UNI

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