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Sri Lankan cabinet clears proposal to restructure international sovereign bonds

Sri Lankan cabinet clears proposal to restructure international sovereign bonds

Colombo, Nov 26 (SocialNews.XYZ) Sri 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 them after an analysis by the Sri Lankan government's financial advisors on the impact of Sri Lankan economy and the composition of the country's international sovereign debt, investors and settlements, the department said.

 

The department said it will be done in accordance with provisions under the International Monetary Fund's comprehensive credit facility and the parameters of debt sustainability analysis.

Issuing a media release 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 for new instruments over a three-week period, with the final deadline set for December 12, 2024, said the ministry, Xinhua news agency reported.

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 on restructuring of sovereign debt worth 14.2 billion dollars, after discussions with a group of representatives of international investors and the local consortium.

Source: IANS

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Sri Lankan cabinet clears proposal to restructure international sovereign bonds

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