Sri Lanka ISBs gain post IMF Board approval of EFF

Sri Lanka has issued $ 12.55 billion International Sovereign Bonds (ISBs) in total, out of which $ 1.0 billion is defaulted and $ 667 million of interest payment is in arrears as at end of February 2023 according to charts.lk. The Long-Term Foreign-Currency Credit rating of Sri Lanka is at Default status. Despite all, Sri Lanka ISBs gained in the international market. IMF in its statement said “For external private debt, a principal reduction is assumed, with amortization beyond the program period, implying a large NPV reduction.”