Sri Lanka says restructuring deal with bondholders reached

Sri Lanka said it’s reached an agreement in principle with bondholders to restructure its $114 billion debt load, just days before the country heads to elections that have rattled investors.

The government held restricted discussions with nine members of the steering committee of the ad-hoc group of bondholders between September 12th and 18th, it said in a statement on Thursday.

The parties agreed to introduce “governance-linked bond features” as part of the revised bond treatment, it said, referring to clauses that would cut Sri Lanka’s repayments if it meets certain governance and anti-corruption-related targets.

Source: Bloomberg

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