ECONOMYNEXT – Sri Lanka has signed a bilateral agreement with Belgian export credit agency Credendo to reschedule €9.6 million in outstanding foreign debt as part of the country’s ongoing external debt restructuring process, the Ministry of Finance said.
The agreement, which officials describe as a key milestone, follows a memorandum of understanding (MoU) with the Official Creditor Committee (OCC) and underlines Sri Lanka’s commitment to restore debt sustainability and revive its economy after the 2022 insolvency crisis.
Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka. Credendo was represented by Dirk Terweduwe, CEO.
Under the terms, Credendo agreed to restructure €9.6 million in debt and provide extended repayment terms to ease immediate fiscal pressure on Colombo.
The bilateral measure is in line with a broader restructuring effort involving official creditors that included a grace period and maturity extension to support Sri Lanka’s recovery under the IMF’s expanded fund program, the finance ministry said.
“The signing reflects the deep and long-standing bilateral relations between Sri Lanka and Belgium,” he noted.
“We express our sincere appreciation to Belgium for its continued support and cooperation at this critical stage.”
The agreement comes amid positive economic momentum, with Sri Lanka advancing reforms, achieving primary surpluses and receiving continued IMF payments.
In recent assessments, Credendo highlighted the country’s favorable recovery path despite the persistent vulnerability of public finances.
Analysts see such bilateral deals as essential building blocks to complete external debt restructuring after major pacts with bigger creditors such as China, India, Japan and France.
While most of the official bilateral agreements have now been concluded, negotiations with the remaining commercial creditors are ongoing.
The government emphasized that these steps will help restore market access, attract investment and sustain growth as Sri Lanka emerges from its worst economic crisis in decades.
Officials reiterated that full debt sustainability remains a priority to ensure long-term stability. (Colombo/January 28, 2026)
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