Sri Lankan cabinet clears proposal to restructure international sovereign bonds
S
ri Lanka's cabinet has approved a proposal to restructure international sovereign bonds through the exchange of new bonds for presently existing bonds, according to the government's information department on Tuesday.
President Anura Kumara Dissanayake, who is the Minister of Finance, Planning and Economic Development, presented the proposal for restructuring Sri Lanka's debt after an analysis by the government's financial advisors. This analysis focused on the impact of the Sri Lankan economy and the composition of the country's international sovereign debt, investors, and settlements, according to the department.
The restructuring will be conducted in accordance with provisions under the International Monetary Fund's comprehensive credit facility and the parameters of debt sustainability analysis. In a media release issued on Tuesday, the Ministry of Finance, Planning and Economic Development announced the official launch of the exchange of its outstanding international sovereign bonds, totaling approximately 12.55 billion US dollars as of November 25, 2024.
Holders of the existing bonds are invited to tender their bonds and exchange them for new instruments over a three-week period, with the final deadline set for December 12, 2024. The ministry reported that the Sri Lankan government reached a final consensus on restructuring debt by members of the official credit committee of major bilateral creditors in June 2024.
In September 2024, an initial agreement was reached with international bondholders for the restructuring of sovereign debt worth 14.2 billion dollars after discussions with a group of representatives from international investors and the local consortium.
✔️ Sri Lankan cabinet clears proposal to restructure international sovereign bonds
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