Japan’s Foreign Minister, Yoko Kamikawa, emphasized the importance of Sri Lanka’s economic recovery for stability in the Indo-Pacific region during her recent visit to Colombo. Kamikawa urged the Sri Lankan government to take swift action in restructuring its foreign debt to ensure financial stability.
Following discussions with Sri Lanka’s Foreign Minister, Ali Sabry, Kamikawa highlighted the need for Colombo to reach agreements with bilateral lenders and international sovereign bondholders in order to access suspended foreign funding. The Sri Lankan government, which defaulted on its $46 billion external debt in April 2022, had set a target to finalize deals with foreign creditors by April, but as of now, no final agreements have been reached.