COLOMBO: Sri Lanka will save $3 billion in debt write-offs from commercial creditors once a provisional deal to restructure its debt with international bondholders is completed, the president said on Friday.

Sri Lanka said on Wednesday it has secured a deal to move forward on restructuring about $12.5 billion of international bonds, a major step in its fragile recovery from a severe financial crisis.

Sri Lanka bond holders agree to take 28% haircut: govt

Late last month, the island nation, which has total external debt of $37 billion, also inked an agreement with creditor nations including Japan, India and China, to restructure about $10 billion in bilateral debt.

President Ranil Wickremesinghe said Sri Lanka will also save $5 billion in interest owed to creditor nations as part of its debt restructuring process.