Sri Lanka to repay $1bn bond, ending default threat

Bloomberg

Sri Lanka plans to repay a $1 billion bond by the Tuesday deadline, keeping intact its reputation for honouring debt as concern mounts about the nation’s overseas financing.
Authorities will transfer the required funds on Monday, Ajith Nivard Cabraal, the state minister for money and capital markets, said. Moody’s Investors Service placed Sri Lanka’s ratings under review for a downgrade last week,
citing its assessment of the country’s increasingly fragile external liquidity position and the risk of default.
“I have been saying right throughout that we will pay. Unfortunately some bondholders panicked due to rating actions and analyst reports and sold off at huge discounts,” Cabraal said. “Those who came last profited most.”
The payment marks the clearing of only the first test.