In a significant development in Sri Lanka’s ongoing external debt restructuring efforts, the Government of Sri Lanka has entered into a bilateral debt restructuring agreement with the Government of Hungary.
According to the Ministry of Finance, Planning and Economic Development, the agreement covers the restructuring of approximately EUR 30 million in debt and is expected to further strengthen the long-term bilateral relations between the two countries.
The agreement was signed by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka. Representing the Hungarian side were Gyorgyi Rehoregh, Director of the Foreign Corporate Risk Management and Claims and Recovery Directorate, and Adrienn Hegyi Szénásine, Head of the Claims and Recovery Directorate of the same institution, under the Hungarian Export Credit Insurance Company Pvt. Ltd.
This bilateral arrangement follows the Memorandum of Understanding concluded with the Committee of Official Creditors, along with a series of bilateral discussions. The Hungarian Export Credit Insurance Company has agreed to offer debt relief by restructuring Sri Lanka’s outstanding debt obligations.
The Ministry emphasized that the signing of this agreement marks a significant milestone in the country’s external debt restructuring process. It underscores the Sri Lankan Government’s strong commitment to swiftly concluding the overall debt restructuring efforts, thereby restoring debt sustainability and supporting the recovery and rebuilding of the national economy.
