Sri Lanka's recent in-principle agreement with creditor nations to restructure its debt has set the stage for a potential first review of the bailout by the International Monetary Fund (IMF) next month. Peter Breuer, the IMF's mission chief for Sri Lanka, highlighted this crucial step toward stabilizing the nation's financial landscape.

The debt restructuring pact, a collaborative effort between Sri Lanka and its creditor nations, represents a crucial milestone in the country's ongoing efforts to address its economic challenges. This agreement lays the groundwork for the IMF to undertake the first review of Sri Lanka's bailout under its executive board program.

Peter Breuer, while acknowledging the progress made through the debt restructuring pact, emphasized the significance of this development in the context of Sri Lanka's financial stability. The IMF mission chief expressed optimism that the board would conduct the first review of Sri Lanka's Extended Fund Facility (EFF) program before the end of the coming month.

Sri Lanka, grappling with one of its most severe financial crises in recent history, has actively sought to negotiate restructuring deals with creditors over the past year. The recent agreement with the official creditor committee represents a collaborative effort to address the country's debt challenges comprehensively.