Sri Lanka has held restricted discussions and secured a draft agreement with major bondholders to restructure about $12.5 billion of international debt, it said on Thursday, in a major boost to the island nation’s fragile recovery.
The country defaulted on its foreign debt for the first time ever in May 2022, engulfed in a severe crisis and buckling under its high debt burden and dwindling foreign exchange reserves.
The latest agreement comes after Sri Lanka kicked off a third round of formal talks with bondholders in the week commencing Sept 9.
Following the talks with staff from the International Monetary Fund, Sri Lanka and its advisors have designed a revised debt treatment.
Sri Lanka now needs to present the proposal to all its bondholders and they have to agree to the deal for the restructuring to be finalised.
From: channelnewsasia
Business News
