The domestic debt restructuring program has commenced, with no impact on the internal banking system of Sri Lanka, according to Central Bank Governor Dr Nandalal Weerasinghe.
He announced that as part of the proposed restructuring scheme, all bonds issued by the Central Bank of Sri Lanka and bonds held by funds such as EPF/ETF will be reissued at a new interest rate.
Governor Weerasinghe further explained that the newly issued bonds will initially carry a 12% interest rate until 2025. After this period, the interest rate will be reduced to 9%. In the event that any fund does not agree to these terms, a tax of 30% will be imposed on those funds.
These remarks were made by the Central Bank Governor during a press conference held at the Presidential Media Center today.