Sri Lanka to Save $5 Billion in Debt Restructuring, $12 Billion Bond Deal Reached

Jul 3, 2024, 07:14 AM

Sri Lanka is set to save $5 billion in interest owed to bilateral creditors as part of its debt restructuring process, President Ranil Wickremesinghe announced. This restructuring is a crucial step in the country's financial recovery following its default two years ago. The agreement on the core terms of a $12 billion bond restructuring was reached with creditors, including governance-linked bond features in some series of plain vanilla bonds. The restructuring has been facilitated by advisory firms Kirkland & Ellis and Moelis. Japan and India played key roles in the debt restructuring process, paving the way for an IMF bailout. Sri Lankan Finance Minister Ali Sabry recently met his Japanese counterpart in Japan to discuss the restructuring.