Press Releases

The debts restructuring agreement between Japan and Sri Lanka
(Statement by Press Secretary KITAMURA Toshihiro)

March 7, 2025

On March 7 (local time), the Notes were signed and exchanged between the Government of Japan and the Government of the Democratic Socialist Republic of Sri Lanka to reschedule a part of the debts of the Sri Lankan government and Airport and Aviation Services (Sri Lanka) Limited owed to the Japan International Cooperation Agency (JICA). Japan welcomes the official completion of the debts restructuring between the two countries by the signing and exchange of the Notes.
The signing and exchange of the Notes is the first conclusion of the bilateral agreement on debt restructuring between a member country of the Official Creditor Committee (OCC) and Sri Lanka after the signing of the Memorandum of Understanding which identifies the details of conditions for debt restructuring among all the OCC member countries and Sri Lanka in July 2024.
Following the announcement made by Sri Lanka in April 2022 regarding its temporary suspension of external debt payments, Japan, together with India and France as co-chairs, established the OCC and strongly supported Sri Lanka's efforts toward debt restructuring.
The development of Sri Lanka, which is located at a strategic point in the Indian Ocean, is essential for the stability and prosperity of the entire Indo-Pacific region. Japan intends to further contribute to the sustainable development of Sri Lanka.

Total amount of the debts: approximately 369,453,720,000 yen
Payment method: the Government of the Democratic Socialist Republic of Sri Lanka will repay the above mentioned debts in semi-annual instalments between 5 January 2028 and 5 July 2042.
The interests on the debts:
(a) accrued interest from 1 January 2023 to 31 December 2023 will be paid on 5 July 2025,
(b) interest accruing on or after 1 January 2024 will be paid from 5 July 2025 to 5 July 2042, and
(c) the interest rates on the debts are as follows:
0.96% per annum for the Government of the Democratic Socialist Republic of Sri Lanka and
0.18% per annum for the Airport and Aviation Services (Sri Lanka) Limited.