Sri Lanka has successfully completed its debt restructuring process and successfully concluded the talks with the bondholders.
According to an announcement issued by the government yesterday evening, an agreement has been reached with advisers to restructure outstanding bonds worth US$12.5 billion. Accordingly, it has been agreed to reduce the face value of the bond loan by 28% and the past interest by 11%.
“Sri Lanka is pleased to report that at the end of the meetings, following discussions, the parties have agreed on the basic financial terms of the restructuring of the International Sovereign Bonds (ISBs). The announcement issued by Sri Lanka states.
Sri Lanka held talks to restructure its bond debt on 21 June 2024 and 2 July 2024.
Clifford Chance LLP and Lazard, Sri Lanka’s legal and financial advisors, were present in this discussion, and White & Case and Rothschild & Co, its legal and financial advisors on behalf of the bondholder’s committee.
Last week, Sri Lanka reached an agreement with its official debt holders, the Paris Club, to restructure most of its debt, and also reached an agreement with China’s Exim Bank to restructure its debt.