• Sri Lanka has officially ended its foreign currency debt default, with 98% acceptance of a bond exchange offer for US$ 12.55 billion in defaulted bonds.

Sri Lanka has officially ended its foreign currency debt default, with 98% of investors accepting a bond exchange offer for US$ 12.55 billion in defaulted bonds. This allows the country to emerge from default status and paves the way for potential upgrades in its sovereign credit ratings. The bond exchange, set to finalize on December 20, includes new bonds tied to Sri Lanka's economic performance and offers US$ 9.5 billion in debt relief over four years. Despite the overall success, a 73% acceptance rate for a 2022 bond and a lawsuit from Hamilton Reserve, a key investor, remain unresolved. The restructuring, which includes a 31% reduction in coupon rates and extended maturities, has positively impacted local bank stock prices, driving the market above the 14,000-level index, signaling optimism for economic recovery.

SL wraps-up debt restructuring, setting country for rating upgrade | Daily Mirror