Sri Lanka yesterday settled $ 500 million worth of maturing International Sovereign Bonds (ISBs), debunking debt default doomsayers. 

“Sri Lanka has paid the $ 500 million sovereign #bond that matured,” tweeted the Central Bank Governor Nivard Cabraal. In his tweet, he tagged rating agencies Moody’s, Fitch and S&P in an apparent snub as they had downgraded Sri Lanka’s sovereign rating and fuelled scepticism of debt default as well as raised concerns over debt repayment capacity.

The $ 500 million ISB was part of the nearly $ 7 billion total debt repayment scheduled for this year. 

The Government, as well as the CBSL have been insistent that Sri Lanka will not default but continue to maintain the country’s unblemished record of honouring its debt commitments. 

Another $ 1 billion worth of ISBs mature in July. 

Sri Lanka repaid $ 2 billion worth of maturing ISBs each in 2020 and 2021 whilst overall debt repayment amounted to approximately $ 6 billion in the past two years. Sri Lanka faces $ 25 billion in sovereign foreign currency obligations until 2026. 

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