Sri Lanka is in negotiations to restructure a series of 2022 bonds that remained outside the country’s sweeping December 2024 debt overhaul. A treasury statement issued said that this in its latest effort to move past the island’s worst economic crisis in decades.

 

 

 

The holdout group includes Hamilton Reserve Bank, which claims a 25% stake in the bonds and has sued Sri Lanka in a court seeking full repayment, delaying full resolution. Other bondholders have now entered talks for a settlement that aligns with terms given to earlier consenting creditors, as Sri Lanka attempts to comply with International Monetary Fund (IMF) debt sustainability requirements.

 

 

 

Authorities said deals are also being discussed on 50 million US dollars owed to two commercial banks and a 175 million dollar bond issued by SriLankan Airlines. The voluntary 2022 bond swap marked a milestone in Sri Lanka’s recovery, unlocking IMF aid and seeing credit rating upgrades, though legal wrangling lingers. The South Asian nation fell into an external default in May 2022 during a crippling crisis, but is showing signs of stabilization after sweeping reforms and international support that included huge humanitarian assistance of over 4.5 billion dollars from India.