Sri Lanka has been informed that a debt-restructuring agreement with creditor nations has been reached, it was reported. 

According to Reuters, a government source said, however, Sri Lanka is yet to receive a letter of confirmation from the official creditor committee.

“Sri Lanka has been informed of an agreement. It is confirmed that an agreement has been reached with bilateral lenders but we are still waiting on an official letter. We expect it soon,” the source, who did not want to be identified, said. 

Japan co-chairs the official creditor committee, together with France and India. China is Sri Lanka’s largest bilateral creditor and is an observer in the group, steering clear of joining the group as a formal member.

Sri Lanka, mired in its worst financial crisis in decades, has been trying to reach restructuring deals with creditors since last year, having been forced to default on its foreign debt in May 2022 after its foreign exchange dwindled to record lows.

The agreement with the group of creditor nations comes about a month after the heavily indebted island nation reached a deal with the Export-Import Bank of China (EXIM) covering about $4.2 billion of outstanding debt.

The EXIM deal will help Sri Lanka clear the first review of an International Monetary Fund (MF) bailout, and secure a second IMF tranche of about $334 million, the country’s finance ministry had said.

Sri Lanka’s total external debt is estimated at $36.6 billion, which includes $10.94 billion of bilateral debt, according to the latest data released by its finance ministry.

The country also needs to reach an agreement with bondholders who hold the bulk of the island’s $12.5 billion worth of international sovereign bonds. (NewsWire)

The post SL reaches debt restructuring deal with creditor nations – Reuters appeared first on Newswire.

Key players in the development of the Colombo Port City have finalised a groundbreaking US$ 1.565 billion deal in China, advancing phase two development, the Port City of Colombo announced.

The Port City of Colombo said the phase two development encompasses the Marina Project, Marina Hotel, and the Colombo International Financial Centre Project.

Meanwhile, President Ranil Wickremesinghe has also held discussions in China today (Oct 19) on the development of the Colombo Port City.

The President conducted significant deliberations on key focal points including the development of the Port City as an international financial centre, the formulation of new financial regulations specific to the Port City and the establishment of judicial and arbitration mechanisms exclusively applicable to the Port City.

According to the President’s Media Division (PMD), the President also engaged in discussions with distinguished representatives from several major Chinese corporations, including China Communications Construction Corporation, Sinopec Company and BYD Company.

These discussions placed considerable emphasis on the exploration of prospective investment opportunities and avenues within Sri Lanka. 

The PMD said the dialogue also encompassed various sectors, including the electrification of Sri Lanka’s transportation systems, electric vehicle assembly and electric train services.

The corporate representatives of these esteemed companies have expressed their unwavering commitment to extending optimal support for advancing Sri Lanka’s economy and seizing the investment prospects the country offers.

President Ranil Wickremesinghe was accompanied by the Sri Lankan delegation during these significant discussions, the PMD added. (NewsWire)

The post US$ 1.5 bn deal for Colombo Port City phase 2 appeared first on Newswire.