Sri Lanka international bondholders may see 20% principal haircut -analysts

Holders of Sri Lanka's international sovereign bonds face a 20% principal haircut in the country's debt restructuring as well as maturity extensions and a reduction in coupons, according to a Barclays report. Investors' focus has shifted to the restructuring of Sri Lanka's $13.4 billion sovereign dollar bonds after Colombo got final sign off on a $3 billion programme from the International Monetary Fund (IMF) earlier this week, a financial lifeline in its bid to recover from its worst economic crisis in more than seven decades. Barclays estimates investors holding the country's sovereign bonds could see a recovery value - the percentage they recoup on their investment - in the mid-40s while exit yields could range from 12% to 15%.