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India and Sri Lanka conclude bilateral debt restructuring pact
April 07, 2025
|Daily Mirror - Sri Lanka
India and Sri Lanka have solidified a bilateral debt restructuring agreement with New Delhi, extending reduced interest rates to support the island nation's economic recovery. Prime Minister Narendra Modi announced during his official visit to Colombo on Thursday.
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The agreement, hailed as a critical step to alleviate Sri Lanka's financial strain, aims to provide immediate fiscal relief.
“This debt restructuring framework will accelerate assistance to Sri Lankans. Today, we have also decided to further increase rates, reaffirming India's unwavering solidarity with our neighbours,” Modi stated.
Over the past months, India converted over US $ 100 million of Sri Lanka's outstanding loans into grants, easing the country's debt burden. The current bilateral debt owed by Sri Lanka to India stands at approximately US $ 1.05 billion.
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