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)

The payment gap for ISB Restructuring between Government and Investor USD 2.5Bn over 2024 to 2038

IMF & Sri LankaApr 22, 2024
The payment gap for ISB Restructuring between Government and Investor USD 2.5Bn over 2024 to 2038

There is a disagreement between the SL government and ISB investors regarding the proposed haircuts for past-due interest and principal amounts. The government seeks a 20% reduction for past due interest and proposes a 30% reduction for principal amounts, while investors are considering a 28% reduction for principal amounts but have not agreed to the 20% reduction for past due interest.

Regarding the annualized average interest cost, until 2028, the government's proposal suggests a rate of 4.2%, slightly higher than the 4.0% rate proposed by investors. However, from 2028 onwards, the average interest rate increased to 6.4% under the investor proposal compared to 5.4% under the government's proposal.

These differences highlight the ongoing negotiations to find a balanced solution that addresses the financial obligations of both parties while ensuring a sustainable approach to debt restructuring.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.