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Debt restructuring talks with Ad Hoc Group of Bondholders back on track, thanks to IMF

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From left: State Minister of Finance Shehan Semasinghe, President’s Chief of Staff Sagala Ratnayake, Secretary to the President Saman Ekanayake and Central Bank Governoor Dr. Nandalal Weerasinghe at a meeting with the IMF in March 2024 regarding its programme for Sri Lanka

By Sanath Nanayakkare

State Minister of Finance Shehan Semasinghe said on Saturday that the government is confident about the successful progression of debt restructuring talks with Sri Lanka’s private bondholders.The state minister’s comments on the matter followed recent reports which indicated that the IMF was currently assessing the latest proposal of the Ad Hoc Group of Bondholders whose earlier proposal was not accepted by the Sri Lankan authorities.

According to a report released by First Capital Research, Sri Lanka rejected international bondholders’ proposal on 15th April 2024 to restructure more than USD 12 billion in debt. Despite ‘constructive discussions’ with the Steering Committee members of the Ad Hoc Group of Bondholders and the two sides could not reach agreement on restructuring terms.

Some of the proposal’s ‘baseline’ assessments and a lack of a contingency option in the case of continued economic weakness were the two main reasons the deal was not agreed.

The negotiations primarily focused on the bondholders’ proposal, particularly concerning the introduction of a Macro-Linked Bond (MLB).

The March proposal suggested a 20% haircut on the nominal amount of existing bonds and the April proposal increased the haircut to 28% with no haircuts on Public Debt Interests (PDIs) in both March and April proposals.

However, significant disparities arose regarding baseline parameters, risk balance, trigger tests, and the allocation of additional value in various MLB scenarios. Following discussions, the bondholders revised their proposal in April 2024 to address some of the government’s concerns.

The IMF is currently assessing the latest proposal of the Ad Hoc Group of bondholders. Also, Sri Lanka has recommenced discussions with bondholders and is optimistic on achieving a resolution regarding debt restructuring by June 2024, the report by First Capital Research stated.

State Minister Semasinghe’s comments affirmed the above backdoor details when he said,” The Paris Club and our bilateral creditors have already given their consent to restructure our debt. Meanwhile, we are confident that we can arrive at an agreement with the Ad Hoc Private Bondholders group as the second round of discussions with them is about to commence. A problematic situation in this regard won’t arise because we are being transparent with all our debt holders in how we are proposing to restructure each category of debt. Also, this procedure is embedded with another key element. That is; the finally agreed upon debt restructuring terms won’t lead to the necessity of a second round of debt restructuring in the future. We treat this as very important.”

“It has only been 18 months since Sri Lanka has achieved a semblance of stability after the economy came to a grinding halt. The economic theory put forward by the Opposition boils down to one single fact. They want the government to print money and balance the budget deficit. Their views point to the requirement of changing laws of the new Central Bank Act and reverting to money printing. Sri Lanka has already experienced the consequences of money printing in the past two years with its debilitating impact on inflation, the value of Sri Lanka rupee, the exchange rate and so on. The new CBSL Act was introduced to avoid falling into that pitfall again. So, whatever arguments the Opposition would make, the government won’t agree to money printing under whatever circumstances,” he stated.

Meanwhile, Sri Lanka gross official reserves stood at US$ 5,438 mn as at end April 2024. This includes proceeds from the People’s Bank of China (PBOC) swap arrangement worth US$ 1,400 million, which is subject to conditionalities on usability. This would mean that the country now has usable foreign reserves of US$ 4,038. This number stood at a mere US$ 20 million in mid-April 2022.



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PM ‘Rings the Bell’ at CSE to champion financial literacy and investor education

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P.M. Dr.Harini Amarasuriya

As part of World Investor Week (WIW) 2026, the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) joined stock exchanges around the world in ringing the market opening bell for financial literacy on 5 October 2026, under the patronage of Dr. Harini Amarasuriya, Prime Minister of the Democratic Socialist Republic of Sri Lanka.

World Investor Week is an annual global campaign led by the International Organization of Securities Commissions (IOSCO) to raise awareness of the importance of investor education and investor protection. The “Ring the Bell for Financial Literacy” initiative, pioneered by the World Federation of Exchanges (WFE), brings together stock exchanges and other stakeholders worldwide to promote greater financial literacy and encourage individuals to make informed financial decisions.

The ceremony also marked the 40th anniversary of the CSE and the joint launch by the SEC and the CSE of the Stock Market Game, an online stock market simulation based on the ATrad trading system.

The Stock Market Game enables participants to gain practical experience of how the stock market works, make investment decisions and construct portfolios of listed shares without using real money. The platform is accessible through the websites of the SEC and CSE and is expected to serve as an important practical tool for promoting financial education. It is envisaged that the Stock Market Game will also be used to conduct simulation competitions among universities and the 100 Capital Market Clubs established in schools across the country.

The ceremony also featured the commemorative issuance of a stamp and First Day Cover to mark the 40th anniversary of the CSE. Issued in collaboration with the Department of Posts and the Philatelic Bureau of Sri Lanka, the commemorative stamp and First Day Cover were presented to Prime Minister Dr. Harini Amarasuriya, by the SEC Chairman Snr. Prof. D.B.P.H. Dissabandara and Ray Abeywardena, Director CSE and Chairman of Central Depository Systems (CDS).

Welcoming the gathering, Rajeeva Bandaranaike, Chief Executive Officer of the CSE, highlighted the importance of obtaining reliable information when making investment decisions.

“We operate in a digital world where a vast amount of information and data is disseminated through social media. While some of this information is factual, some may be inaccurate or misleading. When investing in the stock market, it is essential to make informed and prudent investment decisions. Therefore, investors should obtain information and data from reliable and responsible sources and persons before making investment decisions.”

Addressing the gathering, SEC Chairman Snr. Prof. D.B.P.H. Dissabandara emphasised that the SEC’s role extends beyond regulation to facilitating the further development of the capital market.

“The SEC needs to determine how best to introduce the stock market to Generation Alpha, Generation Beta and generations beyond. When it comes to investors, we need to build confidence in the market, because people will invest only when they have confidence in the market.’’

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Rs. 5 million worth of prizes to be given at 8th edition of CSE Masterminds Quiz Competition

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The Colombo Stock Exchange (CSE) has announced that the eighth edition of the CSE Masterminds Quiz will be held on 9th October 2026, from 3.00 p.m. onwards, at the Main Ballroom, Shangri-La Colombo.

Recognised as Sri Lanka’s premier capital market quiz competition, CSE Masterminds brings together teams from the public and private sectors. Participants will be tested across international business, global markets, current affairs, the Sri Lankan economy and business, the Sri Lankan stock market, and sports and entertainment, before a concluding rapid-fire round.

This year the winning team can win up to Rs. 2,000,000, the runners-up up to Rs. 1,000,000, and the second runners-up Rs. 750,000. Sector awards will also be presented to the highest-performing team from each participating sector. Guest participants will also be able to compete in rounds of Audience questions, and will have the opportunity to participate a raffle draw for three free return tickets provided by Fits Aviation (Pvt) Ltd.

The evening will also include an exclusive after-party with live music provided by the band ‘Doctor’ featuring guest performer Umara Sinhawansa, fine food and beverages, providing an opportunity for networking and celebration. Every participant will receive a premium goodie bag made possible by the support of the event’s sponsorship partners. Collectively, the event will feature over Rs. 5 million worth of prizes, rewards, and giveaways, encompassing championship prizes, sector awards, audience engagement prizes, raffle draw offerings, and goodie bags.

Sponsorship partners include:

Platinum Sponsors: Hatton National Bank PLC and Bartleet Religare Stockbrokers (Pvt) Ltd.

Gold Sponsors: Ex-Pack Corrugated Cartons PLC, Asha Securities Ltd., and Lanka Securities (Pvt) Ltd.

Silver Sponsors: Barista Coffee Lanka (Pvt) Ltd., Capital Trust Holdings (Pvt) Ltd., LOLC Holdings PLC, Arpico Ataraxia Asset Management (Pvt) Ltd., IronOne Technologies (Pvt) Ltd., and LankaPay (Pvt) Ltd.

Co-Sponsors: Access Engineering PLC, Bank of Ceylon, Commercial Bank of Ceylon PLC, CryptoGen (Pvt) Ltd., Deloitte Lanka (Private) Limited, Dialog Finance PLC, Efutures (Pvt) Ltd., People’s Leasing & Finance PLC, Senfin Asset Management (Pvt) Ltd., and Softlogic Stockbrokers (Pvt) Ltd.

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NCCSL to conduct practical workshop on food labelling and advertising regulations in Sri Lanka

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The National Chamber of Commerce of Sri Lanka (NCCSL) is organizing a one-day practical workshop on “Food Labelling & Advertising Regulations in Sri Lanka” on Thursday, 8th October 2026 from 9.00 a.m. to 4.30 p.m. at the National Chamber of Commerce, Colombo 10. The workshop has been organised to provide a practical understanding of the latest regulatory requirements governing the food products labelling and advertising of food products in Sri Lanka, with particular attention to regulatory developments applicable in 2026, compliance requirements, and the potential legal and financial implications of non-compliance.

As food products increasingly compete not only with quality and price but also on packaging, labelling and promotional claims, businesses must ensure the information they communicate to consumers is accurate, transparent and consistent with applicable regulatory requirements. Understanding these requirements is therefore essential for businesses seeking to protect their brands, maintain consumer confidence, and minimize regulatory and legal risks.

The practical workshop will go beyond an overview of regulations and focus on how businesses can apply regulatory requirements in their day-to-day operations. Participants will be guided through key areas of food regulatory compliance, including the national food regulatory framework, recent food labelling regulations and key changes, mandatory approvals and prohibitions relating to food labelling, and the litigation process associated with regulatory violations. The programme will also cover several areas of growing importance to the food industry, including the EU EMPCO Directive, food colour coding regulations, regulations relating to food trans-fatty acids and the importance of compliance in the use of food additives. Practical exercises will further enable participants to apply their knowledge to real-world compliance situations and strengthen their ability to identify potential regulatory concerns.

For further information and registration, please contact the National Chamber of Commerce of Sri Lanka on 011 4741788 – Nethmi or Udula – 071 403 4775.

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