Sri Lanka has made significant progress in its efforts to exit bankruptcy, reaching an agreement in principle with the ad hoc group of bondholders, China Development Bank, and the Local Consortium of Sri Lanka (LCSL) to restructure approximately US $14.2 billion of sovereign bonds. This milestone comes after the country declared a sovereign default in
Sri Lanka has reached an agreement in principle to restructure approximately USD 14.2 billion in sovereign debt with International Sovereign Bond (ISB) holders and has also finalized an agreement with the China Development Bank, according to State Minister of Finance, Shehan Semasinghe. Semasinghe announced on Thursday, September 19, that the ISB deal was secured after
Sri Lanka has successfully restructured defaulted loans and past due interest owed to the Export Import Bank of China, transforming them into $4.187 billion in new loans, according to the Finance Ministry’s June 2024 debt bulletin. In March 2024, Sri Lanka owed $3.993 billion to the Exim Bank of China, including $903.8 million in arrears.