Sri Lanka, China Agree to Restructure $4.2 Billion of Debt

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Sri Lanka and China agreed to restructure $4.2 billion of debt, putting the South Asian nation closer to securing more funds from the International Monetary Fund.

The agreement reached “on the key principles and indicative terms of a debt treatment,” constitutes a key step towards restoring Sri Lanka’s long-term debt sustainability and economic recovery, the nation’s finance ministry said in a statementBloomberg Terminal late Wednesday.