In order to resolve the debt problem of Sri Lanka, which has fallen into an economic crisis, Japan and other creditor countries have reached a basic agreement with the Sri Lankan government to accept changes in conditions, such as postponing repayment deadlines and lowering interest rates.
Sri Lanka has been hit by rapid currency depreciation and inflation due to fiscal policy failures, and has stopped paying its external debt since April last year, effectively defaulting = default.
In order to support Sri Lanka, Japan, France, and India took the lead in April establishing a framework for 4 creditor countries to consider changes in repayment conditions.
In an interview with reporters on the evening of the 29th, Mr. Kanda, Minister of Finance of the Ministry of Finance, who has been involved in the negotiations, announced that the creditor countries had reached a basic agreement with the Sri Lankan government to postpone the repayment deadline and reduce interest rates.
However, the details of the terms of the agreement have not been disclosed.
In this framework, China, Sri Lanka's largest creditor, has only participated in the form of an observer, and China has announced that it has agreed with the Sri Lankan government on the terms of debt restructuring separately from this framework.
Speaking to reporters, Kanda said, "It is a great achievement to carry out a transparent and fair debt restructuring, and I have heard that the content of the agreement between China and this agreement is the same as this one, and I would like to work closely with them."