Sri Lankan Prime Minister Ranil Wickremesinghe told parliament Wednesday the financial health of banks in Sri Lanka was “one of the biggest issues” the nation faced.
Sri Lanka was sued in the US by a bondholder after the South Asian nation defaulted on its debt for the first time in history while struggling to stop an economic meltdown.
Hamilton Reserve Bank Ltd., which holds more than $250 million of Sri Lanka’s 5.875% International Sovereign Bonds due July 25, filed the suit Tuesday in a New York federal court seeking full payment of principal and interest. The bank’s holding represents more than 25% of the aggregate amount of the bonds, which, per the indenture, would likely enable it to block an undesired modification to the notes.
First Published: Jun 23 2022 | 10:02 AM IST