Sri Lanka Bondholders Back $12.6 Billion Debt Restructuring (1)

Sri Lanka gained extensive support from private creditors to restructure its international bonds, a key step for the country to exit an extended default.

Investors representing close to 98% of the country’s $12.6 billion in dollar bonds are expected to agree to swap their securities for new notes, the government said, citing preliminary results of its consent solicitation for the exchange. Once confirmed with official results on Dec. 16, the widespread support would mean that the debt restructuring should be completed before year-end.

The agreement after the South Asian economy defaulted in April 2022 marks a resolution of the debt ...