Sri Lanka Repays $1 Billion Bond, Ending Default Threat
- Transfered funds for the payments on Monday, Minister says
- Nation still has to repay another $1.5 billion next year
Street vendors sell face shields in Colombo, Sri Lanka.
Photographer Ishara S. Kodikara/AFP/Getty Images
This article is for subscribers only.
Sri Lanka has transfered funds to repay a $1 billion bond by the Tuesday deadline, keeping intact its reputation for honoring debt as concern mounts about the nation’s overseas financing.
The money was transfered Monday, Ajith Nivard Cabraal, the state minister for money and capital markets, said by phone. Moody’s Investors Service placed Sri Lanka’s ratings under review for a downgrade last week, citing its assessment of the country’s increasingly fragile external liquidity position and the risk of default.