Sri Lanka says it has reached an agreement with China’s EXIM Bank on debt, clearing IMF funding snag

Sri Lanka says it has reached an agreement with the Exim Bank of China on key terms and principles for restructuring its debt, a key step toward unlocking a second instalment of a $2.9 billion package from International Monetary Fund aimed at rescuing the island nation from a dire economic crisis. The finance ministry said in a statement issued Wednesday that the agreement covers $4.2 billion in outstanding debt and is an important step toward Sri Lanka's economic recovery. The statement said the deal provides the necessary fiscal space for Sri Lanka to implement its economic reform agenda.