President Ranil Wickremesinghe says Sri Lanka is on the path to economic recovery after its debt restructuring process which would allow it save $5 billion in interest owed to bilateral creditors.
Addressing parliament, Wickremesinghe said the cash-strapped country signed deals with China and other creditor nations to restructure about $10 billion in bilateral debt last week following 15 months of negotiations.
The agreements brought Sri Lanka closer to the end of a debt restructuring process that began in September 2022 after its foreign exchange reserves hit their lowest levels and forced the island nation to default on its foreign debt for the first time.
The debt rework, which is underpinned by a $2.9 billion International Monetary Fund (IMF) programme, gives Sri Lanka a chance to restore its debt sustainability and use saved funds to improve public services, increase reserves, and reduce domestic interest rates.
