Sri Lanka has officially confirmed a significant debt restructuring deal with China, covering around USD 4.2 billion of its outstanding debt. With China holding 52% of Sri Lanka’s USD 46 billion external credit, this agreement is deemed a pivotal move for the cash-strapped nation’s economic recovery. The restructuring terms, agreed upon in principle, are expected to restore long-term debt sustainability and pave the way for a prompt economic rebound. Sri Lanka sees this as a substantial step, expressing gratitude to China Exim Bank for its support in resolving the country’s debt situation amidst its worst economic crisis.