SriLankan Air Defaults on Its Sole Dollar Bond for $175 Million
- Coupon was due on Dec. 25, airline sought to amend terms
- Carrier estimated interest payments total 9% of revenue
A SriLankan Airlines on the runway of the Colombo International Airport.
Photographer: Ishara S. Kodikara/AFP/Getty Images
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SriLankan Airlines has defaulted on its $175 million bond, having failed to amend the terms of the debt amid the worst economic crisis to engulf the country in its independent history.
The airline failed to make a coupon payment due on Dec. 25, the board said in a statement this week, adding this constituted a default event under the terms of the debt. Executives would be in touch with holders of the bonds, which are backed by the government.