Debt-restructuring bears fruit immediately

All these powers had reason to fall in line with Sri Lanka  in helping it get over the economic crisis. Japanese Foreign Minister  Kamikawa who visited Sri Lanka last month even mentioned that  strategically placed Sri Lanka’s economic recovery is essential for  stability in the Indo-Pacific region and urged the government to swiftly  restructure its foreign debt. Sri Lanka is located halfway along the  main east-west international shipping route.  

“The restoration of stability and economic development of  Sri Lanka, which is at a strategic location in the Indian Ocean, is  essential for the stability and prosperity of the entire Indo-Pacific  region,” she added at a press conference last month in Colombo.  

Sri Lanka’s final agreement on debt restructuring signed on  the sidelines of the Paris Forum 2024 was welcomed by the United  States. US Ambassador to Sri Lanka Julie Chung, taking to X formerly  known as Twitter, said it is a positive step in the country’s economic  recovery. She said her country encourages Sri Lanka to continue the  reform process.   
Altogether, the agreements, valued at a combined US $ 10  billion, encompass restructuring arrangements with major bilateral  lenders under the auspices of the OCC, co-chaired by Japan, India, and  France.  

The other committee members include Australia, Austria,  Belgium, Canada, Denmark, Germany, Hungary, South Korea, the  Netherlands, Russia, Spain and Sweden.