Sri Lanka and Germany sign debt pact

In Columbo on Wednesday, Sri Lanka and Germany had signed a bilateral agreement linked to Sri Lanka’s external debt restructuring process, underscoring continued international support for the island nation’s economic recovery efforts.

The agreement was signed by Dr Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Sri Lankan government, and by Sarah Hasselbarth, Chargé d’Affaires ad interim, representing the Federal Republic of Germany.

The Ministry of Finance said the agreement represents a key milestone in Sri Lanka’s drive to restore debt sustainability and stabilize its economy following the recent financial crisis. Under the agreement, an estimated 188 million euros in debt will be rescheduled, offering Sri Lanka critical fiscal space as it advances broader reforms.