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

Bid for Basil’s extradition nears final stage: Police

Published

on

Basil Rajapaksa

Govt. is finalising extradition proceedings against Basil to have him stand trial here in respect of several cases

By Norman Palihawadane

The process of having former Minister Basil Rajapaksa extradited from the US to Sri Lanka was being finalised, Police Headquarters sources disclosed yesterday.

The government has formally sought assistance from the United States government to extradite former Minister Basil Rajapaksa, as multiple courts have reissued arrest warrants over his failure to appear before them in connection with two separate criminal cases, a senior police officer told The Island.

The officer, speaking on condition of anonymity, said matters pertaining to obtaining US government authorities’ assistance to extradite Rajapaksa were now being finalised.

Police headquarters sources said law enforcement agencies were currently evaluating red notices, which request the location and provisional arrest of a person pending formal extradition.

The CID and Police Headquarters earlier initiated steps to seek INTERPOL assistance to secure Rajapaksa’s return to Sri Lanka to face court proceedings relating to the two cases in which arrest warrants have been issued against him.

Rajapaksa is believed to be residing in Los Angeles, United States.

The Matara Chief Magistrate’s Court on July 21, 2026, reissued an arrest warrant for Rajapaksa after he failed to appear before court for the second time in connection with a case involving the alleged purchase of a 1.5-acre coconut estate on Eliyakanda Road in the Brown’s Hill area of Matara.

The case relates to the purchase of the property for Rs. 60 million.

The case was filed by the Police Financial Crimes Investigation Division and names Basil Rajapaksa and several other accused, including Ayoma Galappaththi, identified in court reports as the sister of Rajapaksa’s wife, Tissa Galappaththi, and Muditha Jayakody.

However, officials acknowledged that seeking US assistance would only begin a formal international process and would not automatically result in Rajapaksa’s arrest or return to Sri Lanka. Sri Lankan authorities would need to submit court orders, details of the alleged offences, and other supporting documents through the appropriate diplomatic and judicial channels. Any request would then be considered by the relevant US authorities under American law and applicable legal arrangements.

Sources at the Foreign Ministry said sealed correspondence had been exchanged between Sri Lanka’s Ministry of Foreign Affairs and the Legal Department of the US State Department relating to corruption allegations against members of the Rajapaksa family residing in the United States.

The legal foundation for any extradition is the bilateral treaty between Sri Lanka and the United States signed in Washington on September 30, 1999. The treaty applies the principle of dual criminality, meaning authorities must show that the underlying conduct amounts to a crime in both countries. Rajapaksa’s status as a United States citizen would not, on its own, make him immune from a valid request under the treaty’s provisions.

Continue Reading

News

High blood pressure, diabetes lead to about 80% of deaths in Sri Lanka

Published

on

Non-communicable diseases (NCDs) account for 80% of all deaths in Sri Lanka, with high blood pressure and diabetes among the leading causes, Secretary to the Ministry of Health and Mass Media, Dr. Anil Jasinghe, said early this week.

Dr. Jasinghe pointed out that the two conditions were interrelated and could lead to a range of serious health complications, with heart attacks being among the most severe consequences.

Dr. Jasinghe made these remarks while attending the commencement of construction of a modern Cardiac Care Complex at the Anuradhapura Teaching Hospital on Wednesday (16).

The Health and Mass Media Ministry Secretary said:

“The main issue is that these two diseases are interconnected and cause a range of complications in a person’s health. Looking at the current situation in Sri Lanka, only around 50% of those suffering from high blood pressure are under effective control. Similarly, only around 25% of diabetic patients are under proper control. As a result, this has now become a major problem in society.

“The most serious complication associated with both these diseases is Myocardial Infarction (MI), or a heart attack. This has also become the

leading complication. So, how do we control this modern epidemic? This is the biggest challenge before us.

“While establishing modern facilities across the country, our health system must also recognize the changes that have taken place in the demographic structure of our population and disease patterns. Accordingly, our health system must be adapted to suit these changing circumstances.

“Under the policies of the government led by the President and the guidance of the Minister of Health, the Ministry of Health and Mass Media is currently implementing a major programme in this regard. Its three main components are Arogya, Cluster Systems and High-End Care Institutions, which need to be developed to suit the requirements of our health system.”

Continue Reading

News

Ex-NTC chief in remand over 56 bus permits

Published

on

Former National Transport Commission (NTC) Chairman Renuka Perera was remanded until September 29 by the Colombo Magistrate’s Court after being arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) over alleged corruption in the issuance of bus route permits.

Colombo Chief Magistrate Asanga S. Bodaragama issued the remand order after considering submissions by CIABOC officials and defence counsel.

According to CIABOC, Perera was arrested over allegations that he unlawfully issued route permits during his tenure as NTC Chairman, causing a financial loss to the government while conferring an unlawful benefit on an outside party.

Perera was arrested around 9.55 am yesterday (17) over allegations that he issued 56 passenger transport service permits for buses to operate on the Southern Expressway in violation of prescribed procedures and without collecting the applicable annual fees as a single payment.

CIABOC said the alleged offences were committed in contravention of the National Transport Commission Act No. 37 of 1991 and recommendations contained in a Cabinet decision dated September 19, 2014.

Perera, a senior member of the SLPP, currently serves as the party’s Administrative Secretary. He previously served as Chairman of state-owned dairy producer and marketer MILCO.

Continue Reading

Trending