Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.14%
12M T-Bill Rate9.95%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.60% / 11.70%
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

Dollar bonds in distressed Emerging Markets including Sri Lanka offer once in a life time returns in 2023

InternationalNov 30, 2023
Dollar bonds in distressed Emerging Markets including Sri Lanka offer once in a life time returns in 2023

Nearly 20 nations have faced economic distress, with Sri Lanka and Ghana defaulting since 2022. Nonetheless, the significant strides taken by these countries in restructuring their debts have considerably alleviated the risk premium, yielding returns over nine times higher than those in emerging markets.

El Salvador alone generated a 103% return after it won over investors with dollar-bond buybacks. It’s followed by Pakistan, Asia’s biggest recipient of loans from the International Monetary Fund. Defaulted bonds of Sri Lanka and Zambia have advanced on expectations that the restructuring process should be concluded soon, returning more to investors than some worst-case expectations.


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