Sri Lanka has formalized a bilateral agreement with Belgium’s export credit agency, Credendo, to reschedule 9.6 million euros of outstanding external debt, according to the Finance Ministry. This development is part of the nation’s ongoing efforts to restructure its external debt.
Officials have described the agreement as a significant milestone, following the Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC). This step highlights Sri Lanka’s dedication to restoring debt sustainability and revitalizing its economy in the aftermath of the 2022 default crisis.
Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, signed the agreement on behalf of the Government of Sri Lanka, while Dirk Terweduwe, Chief Executive Officer, represented Credendo.
As per the agreement, Credendo has consented to reschedule the 9.6 million euro debt, offering extended repayment timelines to alleviate immediate fiscal pressures on Colombo.
This bilateral measure is in line with broader restructuring efforts involving official creditors, which have incorporated grace periods and maturity extensions to support Sri Lanka’s recovery under the IMF’s Extended Fund Facility programme, as noted by the Finance Ministry.
The ministry remarked, “The signing reflects the deep and longstanding bilateral ties between Sri Lanka and Belgium.” It further expressed gratitude to Belgium for its ongoing support and cooperation during this critical phase.
This deal coincides with positive economic developments in Sri Lanka, as the country advances reforms, achieves primary surpluses, and continues to receive IMF disbursements.
Credendo, in its recent assessments, has acknowledged the country’s favorable recovery trajectory despite persistent vulnerabilities in public finances.
Analysts consider such bilateral agreements as crucial components towards the completion of external debt restructuring, following major agreements with larger creditors such as China, India, Japan, and France.
While most official bilateral agreements have been finalized, negotiations with remaining commercial creditors are ongoing.
The government has emphasized that these steps are vital for restoring market access, attracting investment, and sustaining growth as Sri Lanka emerges from its most severe economic crisis in decades.
Officials reiterated that achieving full debt sustainability remains a priority to ensure long-term stability.
(Colombo/January 28/2026)
