Sri Lanka

Sri Lanka set to pay eurobond next week but default inevitable from mid-2022

  • Price on SRILAN 5 ¾ 01/18/2022s rises above US$96 as government says funds have been set aside to pay

  • Ad hoc funding from China and India will only delay the inevitable and should dilute the value of longer-term bonds

  • Government still resistant to IMF and reforms, but bonds at fair value; retain Hold on post-2022 eurobond curve

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January 13th, 2022
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