Sri Lanka, Korea sign $267 mn debt restructuring amendments

The Government of Sri Lanka and the Government of the Republic of Korea successfully held the Economic Development Cooperation Fund (EDCF) Policy Dialogue 2026 on 28 April 2026 at the Ministry of Finance.

The high-level meeting served as a key platform to review the bilateral development partnership, assess ongoing infrastructure projects, and formalise agreements following recent economic developments.

A major highlight of the dialogue was the exchange of signed debt restructuring amendment agreements for 18 EDCF loans, amounting to approximately US$267 million. This milestone reflects the commitment of both countries to sustain development cooperation amid Sri Lanka’s evolving economic landscape and debt restructuring process.

The session featured presentations on Sri Lanka’s National Development Plan and the progress of debt restructuring, led by the Department of National Planning and the Department of External Resources.

The Korean delegation outlined its Framework Plan for International Development (2026–2030) and mid-term operational direction, aligning its Official Development Assistance with Sri Lanka’s recovery priorities.

Delegates also held detailed technical discussions on major projects currently supported through EDCF financing.

The extension of the existing EDCF Framework Arrangement, signed in 2018, which provides the legal and financial basis for Korean concessional loans to Sri Lanka, was another key focus of the dialogue.

The Korean delegation was led by officials from the Ministry of Economy and Finance, including Byoungseok Choi and Myeonghui Hwang, along with representatives from the Export-Import Bank of Korea headed by Director Daehee Kim.

The Sri Lankan delegation was led by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, together with senior officials from relevant departments, line ministries, and project executing agencies.