Finance Ministry requests holders of all Affected Debts to capitalise any amounts of principal or interest falling due during this interim period at an interest rate not higher than the normal contractual rate applicable to that credit, until a restructuring proposal can be presented to the creditors for their consideration.

Finance Ministry said yesterday holders of all Affected Debts are being requested to capitalise any amounts of principal or interest falling due during this interim period, at an interest rate not higher than the normal contractual rate applicable to that credit, until a restructuring proposal can be presented to the creditors for their consideration.

This policy will apply to the following categories of external public debts of the Democratic Socialist Republic of Sri Lanka (Republic) and its public sector borrowers.

1.All outstanding series of bonds issued in the international capital markets

2.All bilateral (government-to-government) credits, excluding swap lines between the Central Bank of Sri Lanka and a foreign central bank

3.All foreign currency-denominated loan agreements or credit facilities with commercial banks or institutional lenders (including such institutions owned/controlled by foreign governments) for which the republic or a public sector entity is the obligor or guarantor

4.All amounts payable by the republic or a public sector entity following a call during the interim period upon a guarantee (or equivalent financial undertaking) issued in respect of the debt of a third party

Courtesy:Daily FT