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USD 17.5 billion debt restructuring deal secured with bondholders and China Development Bank: Finance Ministry
Sri Lanka had reached agreements with external commercial creditors and China Development Bank (CDB) to restructure approximately 17.5 billion U.S. dollars of external debt, Sri Lanka’s Ministry of Finance said yesterday.
Under the agreements, the bond holders will be consenting to a present value concession of 40.3 percent in the baseline scenario, calculated with a discount factor of 11 percent, the ministry said.This provides significant debt relief and reduces interest payments, strengthening the country’s financial stability, the ministry said.
Sri Lanka reached agreements in principle on the restructuring of approximately 14.2 billion dollars of sovereign debt with the holders of its International Sovereign Bonds, the ministry said. The Finance Ministry has said Sri Lanka has also finalised a deal with China Development Bank (CDB) to restructure 3.3 billion dollars of debt.
As a result of the debt treatment agreements with Eximbank of China, Official Creditor Committee [OCC], CDB, and bondholders, Sri Lanka potentially has obtained over 17 billion dollars of debt service relief during the IMF-supported program, the ministry said.
These include around 2.4 billion dollars from Eximbank of China, 2.9 billion dollars from the OCC, 2.5 billion dollars from CDB and 9.5 billion dollars from the bondholders, the ministry said.
Full text of the Finance Ministry statement: “The Ministry of Finance of the Democratic Socialist Republic of Sri Lanka (“Sri Lanka”) is pleased to announce that it has reached agreements in principle on the restructuring of approximately US$ 14.2bn of sovereign debt (as of end 2023) with the holders of its International Sovereign Bonds (the “Bonds”), following negotiations with the Ad Hoc Group of Bondholders (“AHGB”), a representative group of international investors,and the Local Consortium of Sri Lanka (“LCSL”), a representative group of domestic financial institutions. Collectively, the two groups hold in excess of 50% of the Bonds.
“The agreement in principle with the AHGB follows the first agreement reached with the AHGB in early July 2024 on the key terms of a contingent debt treatment, providing Sri Lanka with varying levels of debt relief depending on the future economic performance of the country. Following consultations with the IMF over the past few months, to ensure that the agreed terms were fully compatible with the Debt Sustainability Analysis (DSA) under Sri Lanka’s IMF-supported program, Sri Lanka and the AHGB were able to finalize the precise set of terms aimed at delivering the appropriate debt relief to Sri Lanka.
“The agreement in principle with the LCSL follows negotiations over more than a year, and reflects domestic holders preference for a non-contingent debt treatment. It contemplates the exchange of Bonds held by domestic holders, for a mix of new plain vanilla USD and LKR denominated instruments with a reduced aggregate principal amount.
“The full set of terms agreed in principle with the two groups can be found in a document posted with the Singapore Stock Exchange earlier today and available at the following link: Sri Lanka – Announcement of Agreement in Principle – 19 09 2024.ashx (sgx.com)
“Under these agreements, it is expected that Sri Lanka will benefit from an upfront debt stock reduction of approximately US$ 3.2bn, which could increase up to a maximum of US$ 4.6bn in case of an economic downturn or decrease down to a minimum of US$ 2.0bn if Sri Lanka’s economic performance exceeds expectations by a significant margin.
“In addition, under the baseline debt treatment scenario, the Government’s debt service payments over the IMF program period will be reduced by approximately US$ 9.5bn, the average maturity of the Bonds extended by over 5 years and interest rate reduced from 6.4% to 4.4% on average.
“Under the agreements, holders of the Bonds will be consenting to a present value concession of 40.3% in the baseline scenario, calculated with a discount factor of 11%. In respect of the highest state (resulting from the most significant economic out performance), bondholders’ present value concession relative to the JWF has increased from 27% to 33%.
“Compared to July’s JWF, coupon adjustments for the highest state were reduced by roughly 160 basis points. Similarly, the coupon adjustments for the second highest state were reduced by roughly 60 basis points.
“Sri Lanka is also pleased to announce that it has finalized agreement in principle with China Development Bank (“CDB”) on the key financial terms of the restructuring of approximately US$ 3.3bn of sovereign debt, based on a set of terms initially agreed in May 2024 following months of good faith engagement.
“The agreements in principle with the AHGB, the LCSL and CDB almost complete Sri Lanka’s sovereign debt restructuring exercise, as agreed under IMF-supported program to restore the country’s long-term sovereign debt sustainability.
“Overall, thanks to the agreements already achieved with Eximbank of China and members of Sri Lanka’s Official Creditor Committee (“OCC”) as well as CDB and bondholders, Sri Lanka will have obtained over USD 17bn of debt service relief during the IMF program period (around USD 2.4bn from Eximbank of China, USD 2.9bn from the OCC, USD 2.5bn from CDB and USD 9.5bn from the bondholders).
Sri Lanka extends its deepest appreciation to all creditors as well as the IMF and the OCC Secretariat for their good faith engagement and continuous support throughout this process. “
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Athapaththu and Dilhari muscle Sri Lanka past Malaysia in mismatch
The quarter-finals of the Asian Games women’s competition, putting top-notch teams against teams without much experience of playing at the highest level, were expected to be mismatches. It took till the third game – Bangladesh vs China was washed out and Thailand gave Pakistan a fright for a proper one-side affair, though, as Sri Lanka bashed 160 after opting to bat, and their bowlers then stopped Malaysia 86 runs short.
Fresh off their appearance in the final of the Women’s T20 Asia Cup, Sri Lanka were always expected to dominate, but it didn’t quite start the way they wanted, with Imesha Dulani run out for another low score in the third over – she hasn’t topped 25 in eight innings since her century against Pakistan on July 31.
Chamari Athapaththu, however, stitched together an 80-run stand off just 53 balls with Hasini Perera for the second wicket, scoring 56 runs in 27 balls to Perera’s 23 in 26 in the collaboration. After the two batters fell, Kavisha Dilhari played a similar role to Athapaththu in the stand with Harshitha Samarawickrama, scoring 36 in 19 in a stand worth 62 in 37 balls.
Athapaththu top-scored with 63 in 37 balls, while Dilhari’s unbeaten 44 came off just 27 balls. For Malaysia, offspinner Nurin Imanina impressed with 3 for 29 from her four overs, picking up all the wickets to fall to bowlers.
In reply, Malaysia were three down inside the powerplay, with Dilhari picking up two of the wickets to fall on her way to returns of 2 for 4 from three overs. Athapaththu chipped in with two wickets of her own to finish with 2 for 3 from two overs, while Mithali Ayodhya got 2 for 15 from three.
It’s not like there was no resistance from Malaysia: Winifred Duraisingam scored 28, though it took her 47 balls to do it, while Mahirah Izzati Ismail scored 24, another slow effort, taking her 42 balls.
Scores:
Sri Lanka Women 160 for 4 in 20 overs (Athapaththu 63, HasinMithali Ayodhya 2-15i Perera 23, Kavisha Dilhari 44*, Harshitha Samarawickrema 25; Nurin Imanina 3-29) beat Malaysia Women 74 for 7 in 20 overs (Winifred Duraisingam 28, Mahirah Izzati Ismail 24; Mithali Ayodhya 2-15, Kavisha Dilhari 2-04, Chamari Athapaththu 2-03, ) by 86 runs
[Cricinfo]
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Bid for Basil’s extradition nears final stage: Police
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.
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High blood pressure, diabetes lead to about 80% of deaths in Sri Lanka
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.”
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