Sri Lanka Secures USD 39M Debt Relief from Australia

COLOMBO (News 1st); The Government of Sri Lanka and the Government of Australia have signed bilateral agreements on external debt restructuring,.

The agreements, signed on October 27, 2025, at the Ministry of Finance, follow the Memorandum of Understanding (MoU) reached with the Official Creditor Committee (OCC) and underscore Sri Lanka’s commitment to concluding the restructuring process in a timely manner.

Through constructive bilateral discussions, the Government of Australia has agreed to extend debt relief to Sri Lanka by rescheduling outstanding debt obligations.

The total debt restructured under these agreements is estimated at approximately USD 39 million.

The signing ceremony featured Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, representing Sri Lanka, and Matthew Duckworth, High Commissioner Designate of Australia to Sri Lanka.

Officials emphasized that this bilateral arrangement not only supports Sri Lanka’s path to economic stability but also strengthens the longstanding ties between the two nations.

The Government of Sri Lanka expressed its appreciation to Australia for its continued support and cooperation during this critical phase.