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%
USD/LKR303/304
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

Sri Lanka send revised debt restructuring proposals to bond holder via its legal and financial advisors

IMF & Sri LankaFeb 14, 2024
Sri Lanka send revised debt restructuring proposals to bond holder via its legal and financial advisors

International media reported earlier that Sri Lanka ISB bondholders were not happy with the progress we made so far on negotiations. The government had initially proposed a 30% haircut with debt reprofiling. Details of the revised proposal are yet to be made available.

Rob Hawcroft has suggested a potential compromise involving a 25% haircut and approximately 2 1/2 years of Past Due Interest (PDI), aiming for a par recovery in the high 80s, nearly 90 cents. Additionally, two new bonds, with maturities of 5 years and 10 years, and a 6% coupon at a 12% exit yield, could potentially achieve a recovery in the low 60s.

Sri Lanka is looking to restructure its USD 12.55 Bn ISBs, with USD 1.8 Bn in past due interest, highlighting the complexity and importance of these negotiations for the country's financial stability.

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