The deal has been nearly a year in the making and a lifeline for the country that has billions of dollars in loans.
Foreign minister Ali Sabry told the BBC the government will raise funds by restructuring state-owned enterprises and privatising the national airline.
However, analysts warned Sri Lanka still faces a tough road ahead.
The country’s economy has been hit hard by the pandemic, rising energy prices, and populist tax cuts.
 bailout from the International Monetary Fund (IMF) as it faces its worst economic crisis since independence.){kind=link}