SriLankan Airlines fails to pay coupon on 7% bonds, sees default

By Marisa Wong

Los Angeles, Jan. 25 – SriLankan Airlines Ltd. confirmed that it did not pay the coupon that was due Dec. 25 on its $175 million 7% bonds due 2024 guaranteed by the government of the Democratic Socialist Republic of Sri Lanka (ISIN: XS2010609662), according to a notice posted Thursday.

The company had announced on Jan. 16 that it did not intend to pay the Dec. 25 coupon.

Because the coupon has not been paid, a further event of default under the bonds has now occurred.

The issuer had already failed to pay the coupons due on Dec. 25, 2022 and June 25, 2023. Those missed payments led to existing events of default under the bonds.

The company reiterated that its board intends to communicate further with holders of the 2024 bonds in due course.

The flag carrier of Sri Lanka is based in Katunayake, Sri Lanka.

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