Sri Lanka yesterday signed the bilateral amendatory loan agreements with the Saudi Fund for Development (SFD), a key step in its ongoing external debt restructuring process, the Finance Ministry said.
The restructured amount totals 516.95 million Saudi riyals (US $ 137.9 million) and the agreement forms part of Sri Lanka’s efforts to overhaul its external debt, following the island nation’s 2022 default.
“The Kingdom of Saudi Arabia has played a pivotal role by providing continuous loan disbursements, even after Sri Lanka declared a debt standstill decision due to the economically challenging situation. This assistance enabled the significant progress of the development projects without any hindrances of implementation,” the Finance Ministry said in a statement.
The loans extended by the SFD were granted on concessionary terms, which the ministry said offered relief to the country’s overall debt burden.
Finance, Planning and Economic Development Ministry Secretary Dr. Harshana Suriyapperuma signed the agreements on behalf of the Sri Lankan government, while SFD Chief Executive Officer Sultan Abdulrahman A. Almarshad represented the Saudi side.
The signing ceremony coincided with the formal opening of the Wayamba University Township Development Project, which is funded by the SFD. A high-level SFD delegation attended the event during their visit.
“The conclusion of the loan restructuring agreements will certainly pave the way to developing further the deep and long-standing bilateral relationships between the Kingdom of Saudi Arabia and government of Sri Lanka,” the ministry said.