Ad Hoc Group of Bondholders Statement on Progress in Sri Lanka’s Debt Restructuring

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NEW YORK, Dec. 1, 2023 /PRNewswire/ — The Ad Hoc Group of Bondholders (the “Group”) of the Republic of Sri Lanka (“Sri Lanka“) notes the statements released by the Official Creditor Committee (“OCC”) and the Sri Lankan Ministry of Finance on November 29, 2023 on the agreement-in-principle (“AiP”) reached between Sri Lanka and the OCC. The Group welcomes progress on the restructuring of official claims, as uncertainty around the treatment of these claims has hindered Sri Lanka’s recovery.

At this point, the terms of the AiP reached between the Sri Lankan authorities and the OCC on the one hand, and China Exim Bank, an official sector creditor, on the other hand on October 11, 2023, have not been shared. The Group finds it regrettable that there remains such a significant lack of transparency on the part of official sector creditors despite the Group’s efforts so far to act as a constructive counterparty.

Transparency between creditors is critical for the private sector to reach an agreement compliant with the parameters of Sri Lanka’s IMF programme’s first review, and one that provides fair and equitable debt treatment.

The Group has expressed support for Sri Lanka’s efforts since February 2023, has been forthcoming and transparent with official stakeholders at every stage of the process, and has repeatedly made efforts to engage with the Sri Lankan authorities and its advisors in good faith. Unfortunately, no substantive engagement has taken place between Sri Lanka and its private creditors to date.

The Group remains committed to reaching an agreement with the Sri Lankan authorities as quickly as possible to find a sustainable solution to Sri Lanka’s debt challenges as they relate to the international bond debt.

The Group is advised by Rothschild & Co and White & Case LLP as financial and legal advisors, respectively.

Source: The Malaysian Reserve