Sri Lanka reaches preliminary deal on US$12.5 billion bond rework
Following talks with IMF staff, Sri Lanka and its advisors have designed a revised debt treatment
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
SRI Lanka has held restricted discussions and secured a draft agreement with major bondholders to restructure about US$12.5 billion of international debt, it said on Thursday (Sep 19), in a major boost to the island nation’s fragile recovery.
The country defaulted on its foreign debt for the first time ever in May 2022, engulfed in a severe crisis and buckling under its high debt burden and dwindling foreign exchange reserves.
The latest agreement comes after Sri Lanka kicked off a third round of formal talks with bondholders in the week commencing Sept 9.
Following the talks with staff from the International Monetary Fund, Sri Lanka and its advisors have designed a revised debt treatment.
Sri Lanka now needs to present the proposal to all its bondholders, and they have to agree to the deal for the restructuring to be finalised. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Air India asks Tata, Singapore Airlines for funds after US$2.4 billion loss
‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival
From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?
South-east Asian markets account for 8.8% of global capital inflows from 2021 to 2024: report
