Ministry of Finance Announces Conclusion of Consent Solicitation and Exchange Offer for International Sovereign Bonds

COLOMBO (News 1st): Yesterday, the Ministry of Finance announced the expiration of its Consent Solicitation and Exchange Offer for its International Sovereign Bonds (ISBs). 

The Ministry says that the overwhelming response from market participants, with a participation rate approaching 98%, represents a substantial advancement in Sri Lanka's debt restructuring process. 

On November 25th, the government offered bondholders a chance to exchange their existing ISBs for new debt instruments, as per the agreement reached with major creditors holding approximately 50% of the outstanding debt.

The Ministry of Finance says that the strong support for the exchange offer shows international investors' confidence in Sri Lanka's economic recovery plan. 

It adds that the government will continue to work with creditors to restructure debt sustainably and secure a better future for the country.

In its press release, the Sri Lankan Ministry of Finance goes on to note that President and Minister of Finance, Anura Kumara Disanayake, welcomed the positive response from both local and international bondholders regarding the debt exchange, emphasizing that it reflects growing confidence in Sri Lanka's efforts.

He had also acknowledged that the country has faced many challenges in recent years, but the successful completion of this debt exchange, after two years of negotiation, will provide the much needed debt relief.

This relief will create financial space to support development goals, social priorities, and economic recovery while ensuring long-term fiscal stability.

The President had stressed that the debt relief would help strengthen the country's economy and improve its ability to meet future debt obligations. 

He had further expressed gratitude to all parties involved in supporting this process, including creditors, the IMF, and other international partners. 

He had also noted that this milestone signifies a turning point after years of economic crisis and that the government is now focused on rebuilding trust with bondholders and external partners as it moves forward.

It was further mentioned in the Press Release that the bond exchange results will be out on the 16th of December, while the exchange will be finalized on the 20th of December this year.