Sri Lanka debt deal a key milestone towards restoring debt sustainability: IMF

IMF said that Sri Lanka's agreements with China and other creditor nations to restructure about $10 billion in bilateral debt took the island nation a step closer towards restoring debt sustainability.

Colombo: The International Monetary Fund (IMF) said on June 27 that Sri Lanka's agreements with China and other creditor nations to restructure about $10 billion in bilateral debt took the island nation a step closer towards restoring debt sustainability.

"We hope that there will be swift progress on reaching agreements with external private creditors in the near future," Peter Breuer, IMF's senior mission chief for Sri Lanka, said in a statement.

Sri Lanka still needs to convince bondholders to restructure about $12.5 billion in international bonds.