“The International Monetary Fund (IMF) welcomed the agreement-in principle between the Sri Lankan authorities and their official creditors represented by the Official Creditor Committee on a debt treatment, consistent with the objectives of the IMF-supported program.

This agreement-in-principle follows the earlier announcement of an agreement-in-principle between the Export-Import Bank of China and Sri Lanka.

These understandings pave the way for the IMF Executive Board to consider completion of the first review of Sri Lanka’s four-year Extended Fund Facility Arrangement Peter Breuer, IMF’s mission chief for Sri Lanka, disclosed in a statement

These understandings pave the way for the IMF Executive Board to consider completion of the first review of Sri Lanka’s four-year Extended Fund Facility Arrangement, he said 

The Government has announced that it has reached agreement in principle with its Official Creditor Committee (OCC) on the financial terms of a debt treatment.

The agreement in principle covers approximately US$ 5.9bn of outstanding public debt and consists in a mix of long-term maturity extension and a reduction in interest rates.