Sri Lanka has repaid defaulted local bondholders with floating-rate rupee bonds, maturing between March 2023 and September 2043, as part of the restructuring of defaulted International Sovereign Bonds (ISBs), which was completed on December 20.
Sri Lanka has issued 8 tranches of bonds of Rs. 19.46 billion to local bondholders totaling Rs. 155.7 billion.
The local bondholders, mainly banks, which had seen bad loans hurting capital, do not face a principal reduction, according to the Central Bank of Sri Lanka (CBSL).
The bonds will carry a coupon rate 50 basis points above the central bank’s Standing Lending Facility (SLF) rate. The SLF rate used will be the six-month historical average, calculated 30 days prior to the interest payment date.
