SriLankan Airlines has notified the Singapore stock exchange of its default relating to its US$175millon 7% sovereign-guaranteed bond due 2024. The airline referenced the “extreme deterioration of economic conditions” in Sri Lankan on account of its public debt stock becoming “unsustainable” and its “very low level of FX reserves as a result of various events, including the effect of the Covid-19 pandemic and the fallout from the hostilities in Ukraine”. Given the economic crisis currently facing the country, the Government of the Democratic Socialist Republic of Sri Lanka, the 99.52% shareholder of airline company and guarantor of the 2024 Bonds,

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