Japan and other countries working to restructure Sri Lanka's external debts have reached a basic agreement with the South Asian country.

Sri Lanka has suspended external debt repayments since April last year. Fiscal policy failures and other factors triggered a sharp depreciation of the country's currency and price rises.

In April this year, Japan, France and India took the initiative in launching a framework for talks to help Sri Lanka. Seventeen creditor countries have been discussing changes in repayment conditions.

Japan's Vice Minister of Finance for International Affairs, Kanda Masato, told reporters on Wednesday that with the latest deal, the creditors reached a basic agreement with the Sri Lankan government on extending deadlines and lowering interest rates.

Kanda said the process will be highly transparent and fair. Details have yet to be announced.

China, Sri Lanka's biggest creditor, took part in the framework only as an observer. China earlier announced it had agreed with the Sri Lankan government on conditions for debt restructuring separately from the framework.

Kanda said that he heard China's deal is similar to their latest agreement, expressing hope for close cooperation with Beijing.