More than 30 of Sri Lanka’s bondholders launch formal group for debt talks

LONDON :More than 30 asset managers holding Sri Lanka’s international bonds announced on Tuesday the formal launch of a creditor group to start debt restructuring talks with the island nation, according to a statement from legal adviser White & Case LLC.

The group said it is prepared to engage with the authorities and relevant stakeholders for an outcome that is equitable for all.

The firms, including Blackrock and Morgan Stanley Investment Management, together hold $12.6 billion of debt across 11 separate bonds, representing around half of Sri Lanka’s total foreign currency-denominated debt.

The group has also offered to help the government engage with the International Monetary Fund (IMF), a day after a nine-member team from the financial institution arrived in Colombo and held talks with Prime Minister Ranil Wickremesinghe..

Sri Lanka is battling its worst financial crisis since 1948 as decades of economic mismanagement, recent policy errors as well as a hit from COVID-19 to tourism and remittances shriveled foreign reserves to record lows.

Source: Reuters