Sri Lanka Sued by Bondholder in US

by Staff Writer 22-06-2022 | 8:55 AM

A privately held bondholder sued Sri Lanka in the U.S. District Court in Manhattan over the country's alleged default on a $1 billion sovereign bond maturing next month.

Hamilton Reserve Bank Ltd., which holds more than $250 million of Sri Lanka’s 5.875% International Sovereign Bonds due July 25, filed the suit Tuesday in a New York federal court seeking full payment of principal and interest.

Hamilton Reserve Bank Ltd demanded immediate payment of $257.5 million of principal plus interest, saying Sri Lanka had stopped servicing its sovereign debt and missed payments on two other bonds, causing a cross-default.

An International Monetary Fund (IMF) staff mission arrived in Sri Lanka early this week to continue talks on a bailout program.