Sri Lanka's government has ratified a $14.2 billion debt restructuring agreement with the International Monetary Fund (IMF)

 

Sri Lanka's government has ratified a $14.2 billion debt restructuring agreement with the International Monetary Fund (IMF). This move is a significant step towards resolving the country's debt crisis, which began in April 2022 when Sri Lanka declared sovereign default .

 

The debt restructuring agreement was reached in September 2024, during the previous regime, and has been ratified by the new government. The agreement involves exchanging new bonds for existing ones, which will help reduce Sri Lanka's external debt .

 

The International Monetary Fund (IMF) has also approved a staff-level agreement for the fourth tranche of Sri Lanka's $2.9 billion bailout package. This approval will facilitate the disbursement of around $330 million .

 

Sri Lanka's debt crisis has been ongoing for several years, with the country's external debt standing at $37 billion as of July 2024. The debt restructuring agreement is a crucial step towards resolving this crisis and restoring economic stability to the country .