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
DFCC Bank has reported a partial sale of its Sri Lankan sovereign bond holdings, resulting in a loss of 2.17 billion rupees. This transaction, however, led to the reversal of 2.45 billion rupees in previously set provisions. The bank’s sovereign bond portfolio was valued at 4.59 billion rupees by the end of December 2023, a
Sri Lankan Banks Discuss Repayment of Sovereign Bonds in Rupees Amid Exchange Rate Concerns Sri Lanka’s domestic banks are in negotiations with the government about repaying their sovereign bonds in rupees, according to sources. This potential shift has raised concerns about its impact on the exchange rate. Currently, out of $12.55 billion in sovereign bonds,