Connect with us

News

Sri Lanka and bondholders agree on restructuring deal

Published

on

Sri Lanka and its creditors have reached agreement on the terms for a 12 billion US dollar bond restructuring, bringing the former closer to completing its debt overhaul two years after a soft default.The deal marks the culmination of more than a year of difficult negotiations between Sri Lanka and its bondholders and the deal will help restore access to international capital markets.

Investors agreed to take a 28% nominal reduction on the bonds as part of the framework, the two sides said in a statement. The ad-hoc bondholder group holds about 50% of the outstanding overseas bonds and includes Amundi Asset Management, BlackRock, Eaton Vance Management, Grantham, Mayo, Van Otterloo & Co., Morgan Stanley Investment Management and T. Rowe Price Associates, among others.

The creditors are represented by White & Case and Rothschild & Co., while Clifford Chance and Lazard Inc. represents the government.

Given below is a statement by the London Stock Exchange: “The Government of the Democratic Socialist Republic of Sri Lanka has announced that it has held restricted discussions between 21 June 2024 and 2 July 2024 (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 LLP 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.

“During the Restricted Period, Sri Lanka, the Steering Committee and its advisors met during a two-day working session in Paris on 27 and 28 June 2024 (the “Meetings”). At the conclusion of the Meetings, Sri Lanka is pleased to report that, following negotiations, the Parties agreed core financial terms of a restructuring of the ISBs, the terms of which are embodied in a joint working debt treatment framework (the “Joint Working Framework”), a copy of which is included in the Annex to this announcement (which is also available as a PDF version through the link at the bottom of this announcement). In addition, the Parties agreed to include Governance-linked Bond features in the terms of one or more series of the plain vanilla bond instruments that form part of the Joint Working Framework.

“As the Joint Working Framework includes a state-contingent feature, it remains to be confirmed by (i) the Secretariat of Sri Lanka’s Official Creditor Committee (the “OCC”) to ensure comparability of treatment with the terms agreed between Sri Lanka and the OCC (“Comparability of Treatment”) and (ii) the IMF staff to ensure consistency with the parameters and debt sustainability objectives of Sri Lanka’s IMF-supported Program. As such, following the Meetings, the advisors to Sri Lanka and the Steering Committee will consult with each of the Secretariat of the OCC, to confirm the consistency of the Joint Working Framework with the principle of Comparability of Treatment, and staff at the IMF, to confirm the consistency of the Joint Working Framework with the parameters and debt sustainability objectives of Sri Lanka’s IMF-supported Program.

“During the restricted discussions, Sri Lanka and the Steering Committee also progressed discussions on certain non-financial provisions.

Sri Lanka would like to thank the Steering Committee, the Group and their advisors for their close collaboration and valuable contribution in the Meetings, and looks forward to further constructive interaction to finalise the ISB restructuring.”



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

President chairs discussion on 2027 Budget Proposals for the Ministry of Industry and Entrepreneurship Development

Published

on

By

A pre-Budget discussion to review the progress of projects implemented under the 2026 Budget allocations for the Ministry of Industry and Entrepreneurship Development and to discuss proposals for the 2027 Budget was held under the patronage of President Anura Kumara Dissanayake at the Presidential Secretariat on Monday (13) afternoon.

The progress of projects implemented by each division of the Ministry of Industry and Entrepreneurship Development and the institutions under its purview using the 2026 Budget allocations, as well as proposals for the 2027 Budget, were reviewed separately during the discussion.

The President also focused on the current status of the programme to establish industrial zones in areas including Dambulla, Ingiriya, Valachchenai, Millaniya and Katunayake. Discussions centred on issues that have arisen in allocating land and developing infrastructure, including electricity, water and roads, as well as the urgent measures required to resolve these issues.

President Dissanayake instructed officials to make every effort to complete all projects already initiated under the Ministry of Industry and Entrepreneurship Development within the stipulated timeframes. He also highlighted the need to clearly identify the Government’s role and limitations in relation to the industrial sector.

Attention was also drawn to the current situation regarding the development of state-owned enterprises, while issues affecting the sugar and salt industries and alternative proposals to address them were also discussed.

The current status of the process to consolidate institutions under the Ministry of Industry and Entrepreneurship Development was also reviewed. The President pointed out that large institutions had been established at different times to meet various needs, ultimately creating a situation in which such institutions had to be maintained using taxpayers’ money.

He stressed that the consolidation of these institutions should not only improve their efficiency but should also result in a relative reduction in operational expenditure compared with the costs incurred prior to consolidation.

Officials also briefed the President on the proposal to establish the Entrepreneurship and Industry Transformation Authority (EITA) and the programme proposed under the Authority.

Attention was also focused on the challenges faced by exporters and industrialists in carrying out their activities. The President instructed officials to submit proposals on general concessions that could be provided to encourage exporters and industrialists.

The President further pointed out that Sri Lanka could develop distinctive expertise by identifying several key areas within the industrial sector and providing the facilities necessary for their development.

Minister of Industry and Entrepreneurship Development Sunil Handunnetti; Minister of Labour and Deputy Minister of Finance and Planning Anil Jayantha Fernando; Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe; Secretary to the President Dr Nandika Sanath Kumanayake; Chief of Presidential Staff Prabath Chandrakeerthi; Senior Additional Secretary to the President Russell Aponsu; Secretary to the Ministry of Finance, Planning and Economic Development Dr Harshana Suriyapperuma; and Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, along with officials from the Ministry of Finance and the Ministry of Industry and Entrepreneurship Development, participated in the discussion.

[PMD]

Continue Reading

News

Prime Minister meets the Amir of the State of Qatar and conveys condolences on the passing of the Father Emir

Published

on

By

Prime Minister Dr. Harini Amarasuriya, visited the State of Qatar to convey condolences on the passing of the Father Emir, at Lusail Palace in Doha on Wednesday  (15 July).

Upon her arrival, the Prime Minister was received by His Highness Sheikh Khalifa bin Hamad bin Khalifa Al Thani, Minister of Interior of the State of Qatar. The Prime Minister subsequently met with His Highness the Emir of the State of Qatar, Sheikh Tamim bin Hamad Al-Thani.

During the meeting, Prime Minister Dr. Harini Amarasuriya conveyed to the Emir the deepest condolences of the Government and the people of Sri Lanka on the passing of the Father Emir, Sheikh Hamad bin Khalifa Al Thani.

The occasion was attended by the Deputy Emir of the State of Qatar Sheikh Abdullah bin Hamad Al Thani; Prime Minister and Minister of Foreign Affairs,  Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani;  Hassan bin Abdullah Al Ghanim, Speaker of the Shura Council; senior members of the Royal Family.

[Prime Minister’s Media Division]

Continue Reading

News

Current El Niño Status in Sri Lanka

Published

on

By

At present, El Niño conditions have developed and are classified as being at a weak level. Forecasts indicate a 63% probability of a very strong El Niño event developing during the period from November 2026 to January 2027. According to the National Oceanic and Atmospheric Administration (NOAA), there is approximately a one-third probability that El Niño will remain below a very strong intensity.

Typical Climatic Conditions Associated with El Niño
Based on analyses of past El Niño events that occurred between 1950 and 2025:
• Rainfall during July and August may be below normal, particularly in the dry zone areas.
• From October onward, rainfall is generally expected to be above normal.
• If a positive Indian Ocean Dipole (IOD) develops, enhanced rainfall conditions may continue until December.

Sectors Requiring Attention
• Appropriate measures should be taken for water resource management during July and August.
• Increased rainfall expected from October onward may lead to floods and landslides, requiring preparedness and close monitoring. The forecasts are important for sectors such as, Agriculture /Water management /Livestock /Health /Energy /Other climate-sensitive sectors
• Attention should be paid to official information issued by the Department of Meteorology.

Actions by the Department of Meteorology
The Department of Meteorology continuously monitors the evolving situation and issues:
• Weekly and monthly seasonal forecasts and Monthly analyses of rainfall data to monitor meteorological drought conditions.
As weather conditions are influenced not only by El Niño but also by other climatic factors, updated forecasts and advisories are regularly shared with relevant stakeholder organizations (Irrigation/ Water Management Committee /Department of Agriculture/National Building Research Institute/Disaster Management Centre (DMC)/Ministry of Health /Sri Lanka Land Development Corporation…etc). The Department also provides technical support to the committee established through a Cabinet decision to address climate-related impacts. The Department’s monthly rainfall outlook for July to September 2026 is attached

Monthly Rainfall Forecasts for July, August and September 2026
Month Rainfall forecast
July 2026

During July 2026, there is a higher probability of having near normal rainfall across most parts of the Western and Southern Provinces. The remainder of the country is expected to experience below normal rainfall.

August 2026

There is a higher probability of having below normal rainfall across most parts of the country during month of August 2026.

September 2026

There is a possibility of above-normal rainfall across most parts of the Western and Southern Provinces, while near-normal rainfall is expected in the Sabaragamuwa Province. Below-normal rainfall is likely in the remaining areas during September 2026.

Note: These long-range forecasts may change due to strong day-to-day atmospheric variability associated with the movement of weather systems such as atmospheric disturbances, low-pressure areas, and depressions, as well as intra-seasonal oscillations such as the Madden–Julian Oscillation (MJO). Therefore, in addition to the weekly and monthly forecasts, it is important to pay attention to the Department’s official announcements, weather advisories and warnings, as well as the daily weather forecasts issued by the Department of Meteorology.

Continue Reading

Trending