• Sri Lanka plans to sign an MoU with the Official Creditor Committee of the Paris Club of Nations and the Export-Import Bank of China to restructure its debts before the completion of an IMF Executive Board review.
• The government anticipates signing the MoU before the review, which, if approved, will release $337 million in funding for Sri Lanka.

The Sri Lankan government is on track to sign a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC) of the Paris Club of Nations and the Export-Import Bank of China (EXIM Bank) to restructure the country's debts before the completion of the IMF Executive Board review of its Extended Fund Facility Arrangement next month. A top source familiar with the talks expressed confidence that the MoU will be signed prior to the review, which, upon approval, will unlock $337 million in funding for the country. While the restructuring process with bilateral creditors is expected to conclude soon, uncertainties persist regarding debts involving private bond holders and commercial loans from China Development Bank. However, the government remains optimistic and actively engaged in negotiations with creditors, aiming to address these debts following the resolution with bilateral lenders.

Sri Lanka to sign debt restructuring MoU with bilateral creditors before IMF review next month | Daily Mirror