Sri Lanka and Japan signed agreements on Friday to restructure $2.5 billion worth of debt, completing two years of talks that will assist the island nation in getting back on its feet after a severe financial crisis.

Defaulted loans of 369.453 billion yen (about 2.5 billion Us dollars) due from Sri Lanka were rescheduled till 2042, an interest rates below 1 percent, as per a statement from Japan's Ministry of Foreign Affairs.

Sri Lanka signed a deal with Japan Friday to restructure $2.5 billion in loans, marking the first agreement with bilateral creditors who had pledged debt relief to the cash-strapped nation last year.

Sri Lanka's finance ministry expressed gratitude, saying Tokyo had played a "pivotal role" in facilitating the country's debt restructuring.

Japan yesterday became the first bilateral creditor among the Official Creditor Committee (OCC) to restructure Sri Lanka’s bilateral external debt worth US $ 2.5 billion and unlocking doors to new projects.

Concludes signing of Exchange of Notes between GoSL and Govt. of Japan and bilateral Amendment Agreement with JICA ..

Sri Lankan shares fell on Friday, dragged by materials and information technology stocks. The CSE All-Share index settled 0.05% lower at 16,115.47. The index is down 2.20% for the week, marking its third straight week of falls.

Sri Lanka should avoid tax exemptions and focus on passing a national budget that is in line with parameters set by the International Monetary Fund to continue with a $2.9 billion program from the international lender,

President Anura Kumara Dissanayake yesterday met with Japanese Ambassador Akio Isomata and discussed issues of bilateral interest. During the meeting, the Ambassador officially invited President Dissanayake to visit Japan and expressed appreciation for the new Government’s policy framework.

Sri Lanka signed a deal with Japan Friday to restructure $2.5 billion in loans, marking the first agreement with official credito

COLOMBO (Reuters) -- Sri Lanka and Japan signed agreements on Friday to restructure $2.5 billion worth of debt, completing two years of talks that will assist the island nation in getting back on its feet after a severe financial crisis.

The Japanese foreign ministry says Tokyo intends to further contribute to the sustainable development of Sri Lanka.