Sri Lanka 🇱🇰 has reached a deal with its bilateral creditors(Japan 🇯🇵, India 🇮🇳, France 🇫🇷 +) to restructure $5.8 billion of debt.

Sri Lanka 🇱🇰 has reached a deal with its bilateral creditors(Japan 🇯🇵, India 🇮🇳, France 🇫🇷 +) to restructure $5.8 billion of debt. The agreement was finalized with the Official Creditor Committee in Paris, France. - PMD

⭕ The details of the deal have not been made public yet. Whether this is good or bad for the country will depend on the haircut and the other terms and conditions of the deal.

⭕ A good deal would put Sri Lanka in a strong negotiating position with other debt holders who hold a larger percentage of the debt and vice versa.

⭕ Sri Lanka has yet to come to a deal with private creditors to restructure $12.5 billion in international bonds.