Macro-financial risk
2026-04-26
11 minute read
13 sources
Sri Lanka After Restructuring: The Post Default Trajectory in 2026
Eighteen months after the ISB exchange and fourteen months into the Dissanayake government, the IMF program is delivering reserves and disinflation, but the medium term debt arithmetic still depends on tourism, tax effort, and a credible parastatal restructuring.
Sri Lanka is the closest case to a completed sovereign restructuring on the post pandemic frontier. The April 2022 default has been resolved through a 48 month IMF Extended Fund Facility approved in March 2023, a Domestic Debt Optimisation completed in September 2023, an Official Creditor Committee deal with Paris Club plus India and Hung...