Sovereign Analysis /
Sri Lanka

Sri Lanka: Recovery analysis puts bonds at fair value

  • Sri Lanka’s bonds have been dropped aggressively post-war, reflecting increased risk of default

  • Currency devaluation and potential IMF shift are big steps in right direction, but will not be enough to avoid default

  • Eurobonds are trading slightly below recovery value in our base case, but with downside risks too; retain Hold

Sri Lanka: Recovery analysis puts bonds at fair value
Patrick Curran
Tellimer Research
11 March 2022
Published byTellimer Research

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