International Sovereign Bonds Yields Signal Investor Confidence
Yields on Sri Lanka’s restructured International Sovereign Bonds have declined steadily since the 2024 debt exchange, reflecting renewed investor confidence in the country’s reform path under the International Monetary Fund program.
Treasury Secretary Dr. Harshana Suriyapperuma said yields now range between 3.6% and 8.4% across maturities, based on Bloomberg data as of 6 February 2026. He noted that even the economic shock from Cyclone Ditwah had no material impact on trading performance.
Sri Lanka remains close to completing its external debt restructuring, with over 92% finalised and agreements covering nearly 99% of external debt. An IMF Staff-Level Agreement on the Fifth Review was reached at end-2025, with Board approval expected soon.
If approved, a further $350 million will be disbursed, bringing total IMF funding to about $2 billion under the Extended Fund Facility running through 2027.
