With significant progress made in negotiations, the Steering Committee believes it is crucial to launch the restructuring plan by mid-September 2024 to ensure Sri Lanka’s path to sustainable growth and financial stability.

The Steering Committee, moving to file an amicus curiae brief about Sri Lanka’s ongoing motion for a further stay of proceedings filed at US Southern District Court of New York in Hamilton Reserve Bank Ltd. v. Sri Lanka, tends to support the island nation through its financial crisis while safeguarding the interests of international bondholders.

Since April 2022, when Sri Lanka suspended principal and interest payments on over $ 12.5 billion of its foreign debt, the country has been working towards a comprehensive restructuring of its external debt. In March 2024, Sri Lanka began initially restricted negotiations with the Bondholder Group, and by June 2024, both parties had agreed on a Joint Working Framework.

This framework proposes significant measures, including forgiving approximately $ 4 billion of outstanding debt, deferring near-term maturities, and providing more than $ 9 billion in cash flow relief during the period covered by the International Monetary Fund (IMF) program from 2023 to 2027