SriLankan Airlines and the government have reached an agreement in principle with major bondholders to restructure USD 175 million in guaranteed bonds due in June 2024, officials said.
The agreement is subject to approval by the Cabinet, the International Monetary Fund (IMF), and the Office of the Controller of Currency (OCC).
Under the deal, bondholders have agreed to a 15 percent haircut on their total claims, with the remaining amount to be exchanged for a combination of cash and medium-term government bonds.
The new government-issued bonds carry an interest rate of 4 percent, providing a structured repayment plan while easing the airline’s immediate debt obligations.
