Sri Lanka has signed a bilateral agreement with the Government of Denmark to restructure $39 million of outstanding debt.

The Ministry of Finance, Planning and Economic Development stated that the deal marks a key milestone in the country’s External Debt Restructuring Process. 

The agreement follows bilateral discussions after the conclusion of the Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC).

The rescheduled debt will help restore debt sustainability and revitalise the national economy, the Ministry noted. 

The agreement was signed by Dr. Harshana Suriyapperuma, Secretary of the Ministry, and Mr. Lars Løkke Rasmussen, Denmark's Minister for Foreign Affairs.