President Ranil Wickremesinghe declared that Sri Lanka has secured critical debt restructuring agreements with its bilateral creditors, marking a significant stride towards economic stability. Addressing the nation, President Wickremesinghe described the agreements, finalized in Paris and Beijing with official bilateral creditors and China’s Exim Bank, as pivotal achievements after rigorous negotiations.
The agreements allow Sri Lanka to defer all bilateral loan installment payments until 2028, with extended repayment terms stretching to 2043 on concessional terms. This development is expected to dramatically alleviate the country’s debt burden, reducing foreign debt payments to less than 4.5% of GDP between 2027 and 2032, down from 9.2% in 2022.
President Wickremesinghe expressed gratitude to the creditors involved, including China, India, Japan, and France, highlighting their crucial role in supporting Sri Lanka’s economic recovery efforts. He emphasized that these agreements will revive stalled infrastructure projects funded by foreign loans, such as the Katunayake Airport expansion, light railway, and expressway constructions, thus stimulating economic growth and job creation.
The President noted that the agreements have restored international confidence in Sri Lanka’s economic stability, paving the way for renewed global investments and economic partnerships. He called upon all members of Parliament to swiftly ratify the agreements during a special session scheduled for July 2nd, stressing the importance of bipartisan cooperation for the nation’s economic future.
Reflecting on the challenges overcome since assuming office, President Wickremesinghe highlighted positive economic indicators such as a return to growth after consecutive quarters of contraction, recovery of foreign reserves, and significant reduction in inflation rates. He reaffirmed his administration’s commitment to fiscal discipline and sustainable economic policies aimed at transforming Sri Lanka into a developed nation by 2048.
In response to critics, the President defended his administration’s approach, citing the successful implementation of strategies to stabilize the economy and restore international credibility. He urged unity and collective efforts to build upon the progress achieved and secure a prosperous future for all Sri Lankans.
The President’s address underscores a new chapter in Sri Lanka’s economic recovery journey, marked by optimism and determination to overcome past challenges and build a resilient economy for future generations.
