Sri Lanka fails to reach agreement with bondholders on restructuring ISBs

The Government of Sri Lanka (GOSL) has failed to reach a deal with bondholders on restructuring its International Sovereign Bonds (ISBs), the Finance Ministry stated today (16). 

A statement from the Ministry noted that the GOSL held restricted discussions over the past three weeks (the "Restricted Period") with nine members  of the steering committee who agreed to take part in the restricted discussions (the "Steering Committee") of the Ad Hoc Group of Bondholders (the "Group", and together with Sri Lanka, the "Parties") of its International Sovereign Bonds ("ISBs").

Sri Lanka was joined by its legal and financial advisors, Clifford Chance and Lazard, respectively, and the restricted members of the Steering Committee were joined by the Group's legal and financial advisors, White & Case and Rothschild & Co, respectively. The Steering Committee as a whole comprises ten of the largest members of the Group, with the Group controlling approximately 50% of the aggregate outstanding amount of ISBs.

"Despite constructive discussions, the Parties did not come to an agreement on restructuring terms. The Steering Committee did not agree to an extension of the restricted discussions upon expiration of the current Restricted Period," the statement noted. 

The full statement released by the Ministry of Finance can be found here: https://www.treasury.gov.lk/api/file/bdfd5073-3639-4c0b-bcda-a52d85e33daa