ECONOMYNEXT – Sri Lanka Development Bonds, dollar denominated bonds sold to domestic buyers have been excluded from a planned re-structuring, Central Bank Governor Nandalal Weerasinghe said after announcing a suspension of payments of external debt.

“SLDBs are domestic debt,” Weerasinghe said. “But we ask them to re-finance them. They are also financed by the money of expatriate workers.”

Sri Lanka Development Bond holders are mostly banks and the government mayhave had to inject capital to banks if they are given hair cuts.

Analysts have also said they had been re-financing bonds during the crisis like senior creditors.

Senior creditors such as the Asian Development Bank and World Bank are not expected to give hair cuts. (Colombo/Apr12/2022)