Sri Lanka Risks IMF Roadblock as Local Debt Plan Gets Few Takers
- Nation must make debt sustainable after clinching IMF bailout
- Rupee-denominated debts stood at around $38 billion in 2022
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Sri Lanka’s plan for a voluntary restructuring of its domestic debt is finding few takers from local banks worried about a hit to their capital, raising the risk of a delay in the country’s financial rescue.
Some of the nation’s biggest lenders including Commercial Bank of Ceylon Plc. and Hatton National Bank Plc warn that a local debt restructuring will lead to capital impairment as banks are forced to set aside more money to cover losses.