Strategy Note /
Sri Lanka

Sri Lanka banks: The severe effects of any domestic debt restructuring activity

  • Recent comments by President Wickremesinghe suggest domestic debt could fall within any restructuring envelope

  • The top banks would be heavily affected; debt haircuts above 5% would require recapitalisation or regulatory forbearance

  • Possible unintended consequences include a pre-emptive withdrawal of wholesale and deposit funding on solvency concerns

Sri Lanka banks: The severe effects of any domestic debt restructuring activity
Rahul Shah
Rahul Shah

Head of Corporate & Thematic Research

Rohit Kumar
Rohit Kumar

Global Financials/Thematics

Tellimer Research
9 August 2022
Published byTellimer Research

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