Sri Lanka pushed back the release of its debt restructuring plan to investors to the middle of May from this month.
(Bloomberg) — Sri Lanka pushed back the release of its debt restructuring plan to investors to the middle of May from this month.
The government will present a comprehensive plan for treating the island nation’s foreign as well as local debt, P. K. G. Harischandra, director of economic research at the central bank, said late Tuesday, without explaining the delay.
The setback underscores the difficulty Sri Lanka faces in balancing the demands of its bondholders, raising the risks surrounding the International Monetary Fund’s bailout.
Overseas investors are demanding that domestic bond holders share billions of dollars of losses, but the government’s proposal for a voluntary restructuring of its local debt is finding few takers from banks worried about a hit to their capital.
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