Japan defers Sri Lankan debt repayment

The Government of Sri Lanka has reached an agreement with the Government of Japan to restructure its bi-lateral debt. Under this arrangement the bilateral debt repayable by Sri Lanka in 2005 amounting to Japanese Yen 20,464,103,097 (US$ 186 million) will be deferred.

The agreement follows the framework laid down in the Memorandum of Understanding signed between the Government of Sri Lanka and the Paris Club on May 10,2005 for deferment of debt in order to carry out Tsunami recovery and reconstruction programmes. The deferred debt will be repaid in 7 equal semi-annual instalments, beginning 1st December 2006.

The signing of Exchange of Notes pertaining to the above debt moratorium took place at the Ministry of Finance and Planning.

Ambassador of Japan in Sri Lanka Akio Suda, signed the Exchange of Notes on behalf of the Government of Japan while Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government of Sri Lanka. M. Fukuyama, Second Secretary, Embassy of Japan in Sri Lanka also participated at this occasion.