Sri Lanka concludes sovereign bond restructuring

Colombo: Sri Lanka successfully concluded its international sovereign bond (ISB) restructuring, bringing closure to one of the most complex and challenging sovereign debt restructuring exercises in recent history, Secretary to the Treasury of Sri Lanka Mahinda Siriwardana said in an online post.

A statement issued by the Ministry of Finance, Planning and Economic Development on Friday said that Sri Lanka on November 25 launched an official Invitation to holders of its ISBs to exchange their bonds against new debt instruments, as per Xinhua news agency. At the expiration of the offer period, Sri Lanka is very pleased to report an extremely high level of participation across all series, which is expected to result in the exchange of close to 98 per cent of the total outstanding amount of ISBs for new securities.

Meanwhile, Sri Lankan President Anura Kumara Dissanayake said that the implementation of this debt exchange would deliver substantial debt relief for Sri Lanka, freeing up resources in the short and medium term to finance Sri Lanka's development and social agenda, while restoring the long-term sustainability of our public finances.

He added that the government is committed to using this debt relief and fiscal space to ensure robust macroeconomic fundamentals and economic growth, enabling Sri Lanka to meet future debt service obligations and overall economic objectives.

"Today we open a new chapter of our history and turn the page following multiple years of crisis," he said.

Sri Lanka defaulted on its external debt in April 2022 and has since engaged in debt restructuring negotiations with both bilateral and commercial creditors under the framework of an IMF programme.