Sri Lanka Poised for Bondholder Deal by Mid-May

Bloomberg: Sri Lanka may reach a deal with investors to restructure its $12 billion in defaulted global bonds by mid-May, according to strategists at Standard Chartered.

The South Asian nation has been hoping to reach a deal in the next few weeks, though the first round of direct talks with dollar bondholders failed to yield a breakthrough. The remaining disagreements relate to the structure of “macro-linked” bonds, an instrument proposed by bondholders, whose payout would vary depending on the nation’s economic performance.

“We think timelines are critical and expect an agreement by mid-May,” strategists including Shankar Narayanaswamy wrote in a note.

Further delays would take the talks too close to the planned presidential elections, Standard Chartered said.