Sri Lanka and Australia Sign Bilateral Debt Restructuring Agreement

29-Oct-2025

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The Governments of Sri Lanka and Australia signed a bilateral agreement at the Ministry of Finance in connection with Sri Lanka’s ongoing external debt restructuring process.

On behalf of the Government of Sri Lanka, the Secretary to the Ministry of Finance, Economic Stabilization, and National Policies, Dr. Harsha Suriyapperuma, signed the agreement, while the Australian High Commissioner-designate to Sri Lanka, Matthew Duckworth, signed on behalf of the Australian Government.

This marks a significant milestone in Sri Lanka’s continued efforts to restore debt sustainability and rebuild its economy.

These agreements reflect the firm commitment of the Government of Sri Lanka to conclude the external debt restructuring process in line with the Memorandum of Understanding reached with the Official Creditor Committee.

Through constructive bilateral discussions, the Australian Government has agreed to provide debt relief to Sri Lanka by restructuring outstanding loans. The total restructured debt under these agreements is estimated at approximately USD 39 million.

This bilateral agreement contributes to Sri Lanka’s path toward economic stability while further strengthening the longstanding and deep relations between Sri Lanka and Australia. The Sri Lankan Government also expressed its sincere appreciation to the Australian Government for its continued support and cooperation.