Sri Lanka Investors Eye China, Zambia for Restructuring Clues

(Bloomberg) — Holders of defaulted Sri Lankan bonds are keeping one eye on the South Asian nation’s biggest creditors and the other on an African debt deal for clues as to how the restructuring might play out.

A preliminary $2.9 billion loan deal with the International Monetary Fund announced last week wasn’t enough to spark a rebound in the notes. They’ve been in free-fall since the onset of the pandemic in 2020 and went into default earlier this year amid the worst economic crisis in the country’s history.