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)

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.


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