Creditors, including those based in China, risk suffering substantial losses from their loans to Sri Lanka, which has defaulted on some of its international debt obligations. The fallout is likely to be exacerbated by possible delays in debt restructuring, which the South Asian nation is negotiating with the support of the International Monetary Fund IMF.
On May 18, Sri Lanka defaulted on its international bonds for the first time, after failing to deliver on coupon payments within the 30-day grace period granted to its April 18 bond due date, said a Moody’s report. The international ratings agency assigned Sri Lanka a rating of Ca, indicative of a likely country...
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