Crucial Breakthrough on SriLankan Airlines Debt Restructuring ✈️

• The Government has reached an agreement-in-principle with Bondholders of SriLankan Airlines, a crucial breakthrough in the remaining commercial debt restructuring that was previously doubted by some. • The deal is currently pending non-objection from the International Monetary Fund (IMF) and the Official Creditor Committee. • S&P Global Ratings had previously raised Sri Lanka's sovereign credit ratings to ‘CCC+/C’, citing progress on restructuring and a strong economic recovery, rapid fiscal consolidation, and reform under the IMF program. • While the overall restructuring is supported, S&P noted offsetting factors remain: a high debt burden (as high-yielding domestic debt was excluded) and a very heavy interest bill, equivalent to about half of general Government revenue.