Friday Mar 20, 2026
Friday Mar 20, 2026
Friday, 20 March 2026 00:28 - - {{hitsCtrl.values.hits}}
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| SriLankan Airlines Chairman Sarath Ganegoda |
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| Treasury Secretary Dr. Harshana Suriyapperuma |
SriLankan Airlines and the Government have effectively concluded the restructuring of the airline’s $ 175 million International Sovereign Bond (ISB) with near-unanimous investor participation and an agreed 16% haircut, marking a decisive step in resolving one of the remaining external debt obligations linked to the State.
The transaction, which exchanges defaulted airline debt for new Government-issued Bonds alongside a cash component, reduces the outstanding claim while extending maturities. Its completion removes a residual contingent liability from the Government’s balance sheet, strengthens creditor confidence, and reinforces Sri Lanka’s broader debt restructuring process and efforts to restore
creditworthiness.
The statement in full is as follows.
SriLankan Airlines Ltd., and the Government of Sri Lanka are pleased to announce the expiration of the Consent Solicitation, Exchange and Tender Offer related to the airline’s $ 175 million Guaranteed Bonds due June 2024, guaranteed by the Government.
On 20 February 2026, SriLankan launched an official invitation to holders of the existing Bonds to tender and exchange their holdings for cash and the US dollar-denominated 4% amortising Past Due Interest (PDI) Bonds due 2028 issued by the Government, called the New Republic Bonds, pursuant to the agreement in principle reached on 20 November 2025 with the members of the Ad Hoc Group of Bondholders together holding approximately 55% of the aggregate outstanding amount of the existing Bonds.
Following the expiration of the offer period, SriLankan Airlines and the Government are delighted to report a very high level of participation of over 99% of the total outstanding amount of the existing Bonds. Bondholders representing more than 97% of the outstanding amount voted in favour, resulting in all existing Bonds being tendered and exchanged on the settlement date.
SriLankan Airlines Chairman Sarath Ganegoda said: “We are sincerely appreciative of the ondholders’ strong participation. The overall transaction results in a 16% haircut on the outstanding claim, and its successful completion marks a significant step forward that allows us to focus on the future of the company with renewed optimism. As the flag carrier of our island nation, this important progress toward financial recovery will further strengthen our ability to support Sri Lanka’s economic prosperity.”
Treasury Secretary Dr. Harshana Suriyapperuma said: “The successful completion of this transaction paves the way for the full normalisation of our relations with our external partners. Having now successfully concluded restructuring agreements covering 99% of our public external debt, we extend our sincere appreciation to all stakeholders who supported Sri Lanka throughout this process. This achievement strengthens our position as we pursue our efforts to improve our credit rating.”
The settlement of the exchange and tender offer is intended to take place on 20 March, subject to the relevant settlement conditions being satisfied. The statement said any questions related to this transaction can be directed to the Information, Tender, Tabulation and Exchange Agent for this transaction Sodali & Co Ltd.
