Sri Lankan Government Seeks To Restructure Massive Debt Through Foreign and Domestic Concessions
- Sri Lanka's cabinet approved a domestic debt restructuring programme to reduce the country's debt burden and meet IMF bailout targets.
- Sri Lanka is asking foreign investors in its international sovereign bonds to take a 30% reduction in principal and seeking similar concessions from holders of its other dollar-denominated bonds.
- The domestic debt restructuring plan will exchange treasury bills for longer-term bonds and spare banks to protect deposits.
- The World Bank approved $700 million in budgetary and welfare support for Sri Lanka, the largest funding since an IMF bailout in March.
- Sri Lanka aims to reduce its massive foreign debt of $41.5 billion and domestic debt of $42.1 billion to turn around its economy facing its worst crisis since independence.
Deutsche Welle 
Washington Post 
Associated Press 
Reuters 
CNN 
