In July 2022, Sri Lanka faced a lawsuit from Hamilton Reserve Bank Ltd for failing to meet external debt payments, totalling USD 12.55 Bn in ISB debts and nearly USD 1.5 Bn in interest dues.
The federal district court in New York granted a six-month stay of proceedings on November 1, 2023. However, as negotiations with external debt holders remain ongoing, Sri Lanka seeks a further five-month extension to the court order, highlighting the ongoing complexity of negotiations with multiple types of the investors.