WASHINGTON: Sri Lanka's major creditors officially launched a negotiation Thursday (Friday in Manila) for restructuring the island's debt, an essential step to give the Indian Ocean nation some financial breathing room.

'I am very pleased to announce that an agreement has been reached between the creditors to discuss the restructuring and thus get Sri Lanka out of the unprecedented crisis it is going through,' said Japanese Finance Minister Shunichi Suzuki at a press conference at the International Monetary Fund (IMF) headquarters.