Sri Lanka has reached a debt restructuring deal with the international sovereign bondholders after protracted negotiations, state finance minister Shehan Semasingher said on Thursday, calling it a "crucial step" in the cash-strapped country's efforts to restore debt sustainability.
In a statement, State Minister of Finance Semasinghe said that an agreement on restructuring terms was reached on Wednesday, completing Sri Lanka's debt restructuring process.
ISBs (International Sovereign Bonds) account for USD 12.5 billion out of the total external debt of USD 37 billion. This agreement is a crucial step in our efforts to restore debt sustainability, Semasinghe said.
He added that the agreement with private bondholders was subject to the approval by the official creditor committee of nations, including India.
"This marks another key milestone in our journey towards economic revival and strengthening," he said.
Officials said the expected haircut agreed upon would amount to 28 per cent
