Debt restructuring agreement: Japan expects GoSL to implement equal and equitable debt treatment

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The final agreement reached with Sri Lanka in respect of debt restructuring is a significant milestone Japanese Ambassador in Colombo Mizukoshi Hideaki said.The Japanese embassy said that with the aim of resolving Sri Lanka’s debt issues, Japan established and led the OCC (Official Creditor Committee0 as a coordination framework, including non-Paris Club creditors, for the first time in debt restructuring for middle-income countries.

The embassy stressed that Japan expects Sri Lanka to implement equal and equitable debt treatment in a transparent manner with other creditor countries and private creditors

The Japanese embassy statement: “The agreement on the Memorandum of Understanding (MOU) that outlines the details of Sri Lanka’s debt treatment between the OCC and the Sri Lankan government was reached. As a co-chair of the OCC, Japan highly welcomes this milestone agreement.

Ambassador Hideaki called upon Foreign Minister Ali Sabry, PC, on Thursday (27) at the Ministry of Foreign Affairs.

The Ambassador congratulated on this milestone agreement and promised continued support to Sri Lanka’s recovery from the economic crisis. Foreign Minister Sabry expressed his profound gratitude for Japan’s excellent leadership in the debt restructuring process, including its pivotal role in creating the OCC. Foreign Minister Sabry also added that the support extended by the Government of Japan and its people significantly contributed to promoting the debt restructuring process.

Furthermore, Japan commends the Sri Lankan authorities for their ongoing efforts in implementing the comprehensive economic and social reforms essential to guide the country back to a sustainable path. Japan reaffirms its continuous and unwavering commitment to supporting Sri Lanka.”