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*Finance Ministry says US $ 17 billion saved in debt servicing
*US $ 9.5 billion saved from bond holders alone, US $ 2.5 billion from China Development Bank
*Govt. hopeful that that credit rating will now improve soon
Sri Lanka overcame yet another major obstacle in its attempt to get out of bankruptcy status with the government reaching agreement in principle with the ad hoc group of bond holders, China Development Bank and the Local Consortium of Sri Lanka (LCSL), an informed source said.
It is for restructuring of US $ 14. 2 billion of sovereign bonds.
Following the worst ever economic crisis, the Sri Lankan government announced in April, 2022 that it was defaulting, making it the first sovereign default since its independence in 1948.
Due to the state of bankruptcy, the government had to submit a plan on debt sustainability.
Later, Sri Lanka got a boost when it sealed an agreement earlier with bilateral creditors led by the Official Creditor Committee (OCC), led by Japan, France and India and the Export-Import Bank of China (EXIM). It covers about US $ 5.9 billion of Sri Lanka's outstanding external debt of US $ 37 billion. Besides, the EXIM bank covers about US $ 4 billion of outstanding debts.
Afterwards, the government proceeded with discussions with bond holders and China Development Bank.
In what appeared to be yet another milestone in its path to come out of the status of bankruptcy, the government reached an understanding with the ad hoc group of bond holders, China Development Bank and the local consortium.
The government announced yesterday that it held restricted discussions between September 12, and 18, 2024 with nine members of the steering committee (the "Steering Committee") of the Ad Hoc Group of Bondholders (the "Group") .
Sri Lanka was joined by its legal and financial advisors, Clifford Chance LLP and Lazard, respectively, and the Restricted Members of the Steering Committee were joined by the Group's legal and financial advisors, White & Case LLP and Rothschild & Co, respectively. The Steering Committee, as a whole, comprises ten of the largest members of the Group, with the Group controlling approximately 40 percent of the aggregate outstanding amount of the Bonds.
Sri Lanka also announces today that in the last year it has held restricted discussions with members of the LCSL), joined by its legal and financial advisors, Baker McKenzie and Newstate Partners LLP, respectively. The LCSL comprises 11 members, controlling approximately 12% of the aggregate outstanding amount of the Bonds.
Altogether, Sri Lanka secured debt service relief of US $ 17 billion during the entire process of the IMF programme (US $ 2.9 billion from the OCC, US $ 2.4 billion from EXIM Bank of China, US $ 2.5 billion from CDB and US $ 9.5 billion from the bond holders), according to the Finance Ministry.
Asked for a comment, State Minister of Finance Shehan Semasinghe said the major obstacle in getting out of bankruptcy is now over, and once the bond exchange is done, the country’s credit rating will notch up.
Prince Friday, 20 September 2024 08:43 AM
Now all news is that Sri Lanka is progressing. Just another 24 hours.
26 50
Sach Friday, 20 September 2024 08:47 AM
I didnt see a single statement from bond holders except a statement by presidential media division.
32 58
Kamal Friday, 20 September 2024 10:16 AM
Stop being a cynic and just Google and search for the announcement made in Singapore to the markets, and educate yourself.
11 20
Kevin Friday, 20 September 2024 12:10 PM
Exactly. This news is only in SL. No international confirmation. Certainly not from bondholders or China. Take it with a pinch of salt.
15 15
Mahila Friday, 20 September 2024 02:31 PM
"Google and search for the announcement made in Singapore to the markets and educate yourself." posted by Kamal!! Others aren't interested in knowing, the sad travails and miserable circumstances of "PUNY LITTLE SL", which is down like miserable NITWIT of a misbehaving KID in this world - Therefore it's NOT 'termed' as NEWS!!?? No Publisher therefore advance a "FARTHING" to provide SPACE, which costs money with NO RETURN on INVESTENT (RoI)! Only in MaRa's, SL whether there is return or not, or he is getting a RUB of ‘Voltaren’ by Dr. (!?) Eliyantha White becomes News our Rural’s, to know whether Appachche 'MYNAH' is still in GOOD 'FUNCTIONAL CONDIITON'!!??
2 2
Man Friday, 20 September 2024 12:13 PM
That's what matters for authenticity. Otherwise, it's like a repeat drama of them like in early this year in announcing SL is no longer bankrupt.
6 7
A loyal Citizen Friday, 20 September 2024 09:01 AM
Absolutely a great milestone. Whoever comes next should build on this success if RM does not win.
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A CONCERNED DISCUSTED CITIZEN Friday, 20 September 2024 12:10 PM
EXCELLENT FOUNDATION FOR ANURA AND OR SAJITH TO CONTINUE LEADING AND TAKING THE COUNTRY FORWARD, AS THE SLY FOX WILL BE CARRIED AWAY BY A HAWK OR EAGLE, AS THE RAJAPASKE'S FAMILY'S CONNECTION TO RANIL IS CALLING THE TUNE USING RANIL'S BRAIN IN KEEPING THEM ALL OUT OF DISCUSSIONS AND OR COURTS, AS TO HOW THEY FEATHERED THEIR NESTS, FAMILIES AND STOOGES AND DRAINED THE COUNTRY BRINGING IT DOWN ON ITS KNEES AND ITS MAJORITY OF CITIZENS STRUGGLING AND OR NOT ABLE TO PROVIDE THE BASIC NEEDS FOR THEIR FAMILIES AND SUFFERING LIKE NO OTHER TIME IN THE HISTORY OF OUR COUNTRY/ISLAND. IF THIS HAPPENED IN MOST OTHER UNDERDEVELOPED COUNTRIES THE CORRUPT POLITICIANS AND THEIR STOOGES WOULD HAVE BEEN BROUGHT BEFORE A COURT OF LAW AND PROSECUTED ( AS IT WOULD HAVE BEEN MONITORED AND BROUGHT TO LIGHT IN THE EARLY STAGES. HOWEVER, THIS CONTINUED OBVIOUSLY AS OTHER MEMBERS OF THE SLPP, PUBLIC SERVANTS AND OTHERS WOULD HAVE DEFINITELY BEEN AWARE AND BENEFITTED TOO AS A RESULT THEY HAD TO PUT UP AND SHUT
11 2
joshua Friday, 20 September 2024 09:22 AM
Well done. New President and Government will take the baton and take forward the success beyond 22nd Sep.
21 40
SP Friday, 20 September 2024 09:23 AM
Based on the above figures ($17.5b), the whole process has achieved a way above what was originally talked about. This is a superb achievement. When the things are moving like this what logic is there to change the leader midstream who was instrumental for all this in such a short period of time. Ranil was giving the right leadership and direction to his capable team - to mention a few Semasinghe, Nandalal and the treasury secretary Mahinda Samarasinghe)? Could Gotabaya have done this? Or Basil or Anura or Sajith? Ranil could because he has done this before (in 2001 and 2015-19) and also he knows how the South Asian and Geo Politics work. Who could have picked up the phone and talked to any world leader (or official) - person to person without an interpreter? Without talking rot but to the point? To win the respect of them? Do we have many such leaders amongst us? Name one. So all is in our capable hands whether to move in that right direction or not.
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NEWS OF HOW THE FOX WAS SELECTED TO REPLACE GOTA IS WILDLY KNOWN AMOUNGST THE RICH FAMOUS AND THEIR ASSOCIATES, CIRCLE OF FRIENDS AND A MINORITY OF THE MAJORITY OF CITIZENS. Friday, 20 September 2024 12:23 PM
SP, TIME TO STOP HAVING BOUTS OF HALICINATION AND INTO THE REAL WORLD OF THE MAJORITY WHO HAVE BEEN LEFT BEHIND TO STEW IN THE EFFECTS OF GOVT'S THE PAST DECADES. GOOD PREPARATION AND FOUNDATION LAID FOR EITHER ANURA AND OR SAJITH TO COMBINE TOGETHER IF REQUIRED TO TAKE THE COUNTRY FORWARD, OR ELSE FACE THE GAS CYLINDER BEING EMPTY DAYS WHEN THE FOX RETIRES BEFORE HIS TERM IS UP AND HAND BACK TO THE CROOKS WHO PUT HIM IN TO DO THEIR DIRTY WORK AND HAND BACK ONCE HIS DREAM OF BEING ON THE PRESIDENTIAL'S PEDESTRAL HE IS NOW SITTING ON AS UNELECTED BY THE PEOPLE. WILL NOT BE SURPRISED IF NAMAL COMING FORWARD HAS BEEN INSTIGATED BY HIS WIFE'S UNCLE THE FOX (THIS IS THE GOSSIP GOING AROUND IN HIGH SOCIETY AND THOSE WHO KNOW THE RELATIONSHIP BETWEEN MR AND RANIL AND HOW RANIL WAS BROUGHT IN TO REPLACE THE EX PRESIDENT WHO FLEW FOR HIS LIFE.
7 4
What is tickling your fancy Friday, 20 September 2024 05:58 PM
Hey Guy! What is tickling your fancy? You praise Ranil for taking the nation out of the clutches of bankruptcy. At the same breath you berate Ranil, calling him names - not one but several and humiliate him with fancy language. What is tickling your fancy? I wonder.
1 4
Man Saturday, 21 September 2024 05:08 AM
The second and third preferences, too must be marked, even when casting the vote for him, to prevent Anura getting selected as paving the way for Gota part II.
0 0
Yohan Friday, 20 September 2024 09:27 AM
Good for anyone who wins the election. Bad luck for RW as it is too late for him to win unless he rigs the election.
29 42
Sanath Friday, 20 September 2024 09:40 AM
This is a great achievement. And thanks a lot Mr. Ranil for your enormous effort. Sri Lankans are grateful people. They will show the gratitude at the right time.
28 36
Charlie Hebdo Friday, 20 September 2024 11:04 AM
Most Sri Lankans don't understand this news and only follow the people with the simpliest solutions, namely the AKD. They will vote for their fairytales.
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TIME FOR ANURA AND SAJITH TO TAKE THE COUNTRY FORWARD, BUILDING UPON THIS FOUNDATION Friday, 20 September 2024 12:25 PM
SANATH, GRATEFUL FOR RANIL HAVING LAID A FOUNDATION FOR ANURA AND OR SAJITH TO TAKE OVER AND LEAD THE COUNTRY AND ALL REPEAT ALL CITIZENS INTO A BRIGHTER FUTURE.
6 1
Shadini Friday, 20 September 2024 09:42 AM
A splendid news indeed. We are not just out from bankruptcy. But also got the debt reduced considerably. Wow. Absolutely wow. Everyone said this isn't possible. But Mr. Ranil, you are the only one who said it's POSSIBLE. You will also win the election. Puluwan Sri Lanka
28 33
Man Saturday, 21 September 2024 05:11 AM
The second and third preferences, too must be marked, even when casting the vote for him, to prevent Anura getting selected as paving the way for Gota part II.
0 0
Lontha Paul Friday, 20 September 2024 09:44 AM
Sehan Semasingha is just the spoke person or is steering the team with his Einstein like brain cells?
14 8
Hasitha Friday, 20 September 2024 09:45 AM
People started to realise the value of this herculean man. Hope it's not too late. Sri Lanka needs to get the maximum out from this man as long as it could.
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Suhada malli Friday, 20 September 2024 09:46 AM
Congratulations to the Finance team headed by president Ranil W on this achievement. However what is disappointing is the lack of truthfulness about the real dangers the country is heading towards 2027. Perhaps the elections made it disadvantageous for RW to be so truthful (apart from the fact that many don't want to believe him even when he is telling the truth). Wel Paalama we are only half way through and as of now another recession in 2 to 3 years even if RW is elected as president seems a very likely possibility! In which case we may have to ask for a postponement of the current targets from IMF. If the other candidates win and actually tries to honour the many promises they made to the voters this recession will be achieved before 2 years. On the other hand if the dont honour the promises and do as currently planned Sri Lanka will pull through provided growth targets are achieved.
16 9
SP Friday, 20 September 2024 10:14 AM
With due respect I am afraid I don’t see your logic. We must make the right start. This is that right start. Then it’s for us under the leadership of Ranil to work towards those goals. Ranil proved nothing is impossible during these two years. So is our desired future.
6 6
sarath Friday, 20 September 2024 10:01 AM
Bad news for SJB and AKD
28 26
Mb Friday, 20 September 2024 10:02 AM
14.2 billion loan Sir for betterment of country.Paving the way for people to rethink snd vote.Good luck to you Sir.
21 17
Man Friday, 20 September 2024 12:21 PM
The second and third preferences, too must be marked, even when casting the vote for him, to prevent Anura getting selected as paving the way for Gota part II.
7 2
Gamini Friday, 20 September 2024 10:02 AM
Hope some fool under the pretext of adhering to his manifesto does not reverse these achievements after 22nd
10 15
Man Friday, 20 September 2024 12:22 PM
The second and third preferences, too must be marked, even when casting the vote for him, to prevent Anura getting selected as paving the way for Gota part II.
3 3
Damith Friday, 20 September 2024 10:02 AM
Aiyo, three wheel drivers will be very unhappy
19 15
j jayt Friday, 20 September 2024 12:15 PM
99% of comment makers are Tamil tigers and their local and foreign supporters, therefore, who can believe it. by the way sri Lanka will go on the hand of Tamil and Indian. bankruptcy of of sri lanka well-made one and not just happened it
3 2
Man Friday, 20 September 2024 12:22 PM
The second and third preferences, too must be marked, even when casting the vote for him, to prevent Anura getting selected as paving the way for Gota part II.
3 3
Bushel Friday, 20 September 2024 10:03 AM
We were made bankrupt by them. Now bound to recover no alternative for any one. But the reality is RW bending law, treating his henchnen in the guise appointing as his advisors is a simple example to prove who Ranil is. Isn't this true? Any moron csn understand this. So let's wait for some nomber of hours, I'm not a PARTY fan
3 3
MANI RATNAM Friday, 20 September 2024 10:10 AM
We will go into deeper problems again. What is the cause of all this ? Best performing economy in SE Asia at Independance to bankruptcy in 2022. Politicians and people dont know. It started with SWRS's Sinhala Only policy in 1956. Chased away best Tamil professionals out of the Country, continued with ethnic riots in 1958, 1961. 1971, 1981 and 1983 black July. Tamil youth forced to figjt after statndadisation and burning Jaffna Library. Since war ended in 2009 the only development in NE is numerous Vihara's dotted near former Hindu Tempkes(such as repacing hindu temple with Vihara in Kinniya hot wells). We spent billions of dollars fir war, brothers killing brothers. SHAME. TWO NATIONS IN ONE COUNTRY AND GO FORWARD LIKE UK OR INDIA. PERIOD.
1 4
Sunil Friday, 20 September 2024 10:21 AM
One thing not being given much prominence is that "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". This is significant to address a longstanding bugbear.
1 2
Hard Truth Friday, 20 September 2024 10:27 AM
Thanks for the good work is (if really done). But these are not joint statment by the creditiors as well (lack of transparency). You all have been voted and selected for this, for nothing else. You all are sole architects of the current economic situation, So its your utmost duty to recover the economy, dut it doesn;t warrant another term for you all. anyway thank if you have done good work (I suspect this last minute election Gundu, as we know the green seeya fox well), NPP will continue the rest and best.
1 3
Sakya Friday, 20 September 2024 10:30 AM
Whatever is beneficial to the country must be appreciated by all leaving politics away. Whomever come to power next must not deviate much from from the existing structure. Credit Ranil and his team for the achievement
1 2
Palayan Friday, 20 September 2024 10:39 AM
Another bluff. PMD is full of political appointees.
2 4
Mark Anandappa Friday, 20 September 2024 10:47 AM
Just another 24 hours to go , it is the Govt version . Not a single word from the bond holders. So we all know the reason behind this move by RW.
2 3
dinesh Friday, 20 September 2024 11:25 AM
usual cheap election gimmicks...timing to try and get votes...
3 3
Tissa Fernando Friday, 20 September 2024 11:31 AM
Don't you find it strange that all these developments coincidentally occurred in the last few days prior to the election? It makes me wonder how much of this is actually true as these kinds of negotiations don't happen overnight and generally take months to conclude. It looks to me like fake news by PMD in total desperation.
3 5
Tissa Fernando Friday, 20 September 2024 11:51 AM
Most of these comments appear to be from the same person using different names.
2 3
Silva mendis Friday, 20 September 2024 12:10 PM
Ranil playing games
2 4
Kevin Friday, 20 September 2024 12:12 PM
This is not in any financial or international news. What is the source please?
2 6
End of capitalism Friday, 20 September 2024 01:28 PM
Guys, who would have thought we would achieve this feat just two years ago? In 2019, the majority of Sri Lankans elected an inexperienced leader who promised prosperity. In just two years the entire nation inherited anarchy. It was this great man, the Lion of Asia, Hon Ranil Wickremasinghe, who had the courage, stamina, wisdom, and vision to take over the challenge of steering the economy into stability. Where was the "social media president" then? Just hiding! Imagine handing over the responsibility of this great nation to a leader and team who are inexperienced. Now that the present government has built a solid foundation, it would be easier for anyone coming to power to steer the economy. But no matter how good the vehicle, if the driver is incapable of maneuvering the vehicle, the result is a disaster. Likewise, if we handover the country's governance to an incapable leader, who can just propound ideas without grounding on solid economics, chaos will be the order of the day!!!
1 2
Patcitz Friday, 20 September 2024 01:28 PM
If not we left from the US/IMF harmful commitments, up until then, we will never be able come out of economic crisis that the US created in Sri Lanka because the GRUDGE of the Chinese invovlement in Sri Lanka being developed by them.
2 0
Bandaranayake Friday, 20 September 2024 02:09 PM
See ,see how is the West
2 0
prageethw Friday, 20 September 2024 02:34 PM
If this is true it is good, but No international news agency reporting this, so this is more like made-up news for the election, but seems like it is over for Ranil and corrupt politicians. Remember there was a time SL found oil wells just before the elections?
1 3
Buddhist Friday, 20 September 2024 07:28 PM
By offering changes to interest rates, the debt burden has increased by over $15 Billion. Ranil should not have done this but waited until the elections were over, and the new president should have renegotiated this, as Sajith and Anura both have openly stated they will renegotiate. Ranil the crook!
0 2
Dilakshan Seneviratne Saturday, 21 September 2024 12:17 AM
This is an absolute farce IMO. There has been no transparency at all in the discussions and agreements by SL govt with IMF. Why? From my reading of the figures, SL will not be getting a proper hair cut for a country that has be dumped to bankruptcy status. We cannot trust our own officials because they are subservient to the rulers for whatever their reasons, in contrast to them working for the benefit of the people. People need a government that they can trust. This is a prerequisite in a democracy and the government with the people will make decisions even if they are tough for people to swallow.
0 0
Man Saturday, 21 September 2024 05:10 AM
The second and third preferences, too must be marked, even when casting the vote for him, to prevent Anura getting selected as paving the way for Gota part II.
0 0
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