What Would a Sovereign Debt Restructuring Look Like for Sri Lanka?

[imhotep]

For anyone interested - a Reorg Webinar - First 30 min presentation and the rest Q&A.

The market flags a 50% probability that Sri Lanka will default on its $1 billion 5.875% notes due July 2022. With the maturity dates drawing closer, the Reorg team hosted a discussion of legal and financial considerations ahead of a potential sovereign debt restructuring of Sri Lanka’s existing $12.55 billion bond curve.

 

[topkollek]

අපේ කබ්බා සර් කාටවත් හිතාගන්න බැරි දෙයක් කරයි. ඔය ආර්ථික විශේෂඥයො දවසක කබ්බා තියරිය ඉගෙනගනියි

 

[imhotep]

අපේ කබ්බා සර් කාටවත් හිතාගන්න බැරි දෙයක් කරයි. ඔය ආර්ථික විශේෂඥයො දවසක කබ්බා තියරිය ඉගෙනගනියි

Most probably he's already packing bags to go there and start teaching on how not to run a Central Bank.

 

[hardwell 1]

Bump good one

 

[Master malli]

tldl

 

[aruna1]

@imhotep
Please share your wisdom on latest situation in SL with the defaulting and what as a middle class person we can expect in the future.

What will go out first and what will come next

 

[slickdeath]

Kauru hari danna ekek therena sinhalen
kiyala dipanko debt gewanne nethiwa deafult unama mokada wenne kiyala ratata

 

[imhotep]

@imhotep
Please share your wisdom on latest situation in SL with the defaulting and what as a middle class person we can expect in the future.

What will go out first and what will come next

I am not a financial expert... but things don't look good. Cabraal went on printing money like leaflets. It's probably because of the politicians. In any case he doesn't seem to understand the monetary aggregates and acted irresponsibly.
What'll happen to the rupee largely depends on the help that we get from the IMF. The future of the rupee or the banking system itself is questionable.
Even the funds held in say NRFC accounts cannot be guaranteed. Only those accounts in a foreign bank operating in SL but domiciled in the UK or USA would probably be safe.
Someone with proper financial know-how could answer....