Sri Lanka Bondholder Lawsuit Should Be Put on Hold, US Says
- Delaying suit will help Sri Lanka debt restructuring, US says
- UK, France previously backed Sri Lanka request for a delay
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The US government said a bondholder’s lawsuit against Sri Lanka over the country’s historic debt default should be put on hold.
In a statement of interest filed Monday in New York federal court, the US backed the Sri Lankan government’s request to delay a lawsuit by Hamilton Reserve Bank Ltd. seeking full payment and accrued interest on more than $250 million in bonds that came due in July 2022. The US said the delay would help with ongoing restructuring talks between the South Asian country and other creditors.