All of Sri Lanka's bilateral loans postponed until 2028: President

ANKARA

Sri Lankan President Ranil Wickremesinghe announced Wednesday the postponement of all bilateral loan payments to foreign countries until 2028 under new debt restructuring agreements, according to media reports.

Sri Lanka will repay the loans by 2043 on concessional terms, Wickremesinghe said at a post-signing address to the nation, said the Sunday Times newspaper.

He said Colombo has signed agreements with China, India and other creditor nations to restructure around $10 billion in debt.

He added that the agreements will grant significant debt relief that would allow Colombo to allocate funds to essential public services and secure concessional financing for its development needs.

"This morning in Paris, Sri Lanka reached a final agreement with our official bilateral creditors. Similarly, we signed another agreement with China's Exim Bank today in Beijing," he added.

The agreements will be presented in parliament for ratification July 2, the president said, urging "all patriotic" lawmakers to ratify the agreements.

The agreements will also enable Colombo to move forward with a $2.9 billion program with the IMF aimed at ending a financial crisis triggered after Sri Lanka declared its first-ever sovereign default in 2022.​​​​​​​