The calculations by UK-based Debt Justice, together with Sri Lankan campaigners Yukthi and the Institute for Political Economy (IPE), find that bondholders will be repaid 80 cents for every dollar lent, using the IMF’s own Net Present Value concept.

This rises to 98 cents if Sri Lanka’s economy grows more than expected by the IMF. In contrast, Government creditors such as China are set to receive 67 cents for every dollar lent, with no increase in payments if economic growth is higher. This level of debt payments will leave Sri Lanka spending over 25% of Government revenue on external debt payments for years to come.

At this level, Sri Lanka will remain one of the most indebted countries in the world, even after the debt restructuring.