Sri Lanka Completes Restructuring of Sovereign Bonds
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Colombo, Dec 14 (NationPress) Sri Lanka has successfully completed its international sovereign bond (ISB) restructuring, marking the conclusion of one of the most intricate and challenging sovereign debt restructuring efforts in recent times, stated Mahinda Siriwardana, the Secretary to the Treasury of Sri Lanka, in a recent online announcement.
A statement released by the Ministry of Finance, Planning and Economic Development on Friday noted that Sri Lanka initiated an official invitation on November 25 for ISB holders to exchange their bonds for new debt instruments, as reported by Xinhua news agency. Following the expiration of the offer period, Sri Lanka is delighted to announce an exceptionally high participation rate across all series, which is anticipated to result in the exchange of nearly 98 percent of the total outstanding ISBs for new securities.
In the meantime, President Anura Kumara Dissanayake remarked that this debt exchange will provide significant debt relief for Sri Lanka, allowing the country to allocate resources in both the short and medium term towards its development and social agenda, while also ensuring the long-term sustainability of public finances.
He further emphasized that the government is dedicated to utilizing this debt relief and fiscal space to strengthen macroeconomic fundamentals and stimulate economic growth, enabling Sri Lanka to fulfill future debt service commitments and achieve overall economic goals.
"Today we commence a new chapter in our history and move forward after several years of crisis," he expressed.
Sri Lanka declared a default on its external debt in April 2022 and has been involved in debt restructuring discussions with both bilateral and commercial creditors under the guidance of an IMF program.
