SriLankan Airlines Limited and the Government of Sri Lanka have announced the successful completion of the consent solicitation, exchange and tender offer linked to the airline’s US$175 million guaranteed bonds.
The restructuring relates to the bonds that were due in June 2024 and were guaranteed by the Government.
The airline launched the offer on February 20, 2026, inviting bondholders to exchange their holdings for a combination of cash and new US dollar-denominated 4.00% amortising bonds due in 2028, issued by the Government. The move followed an agreement in principle reached in November 2025 with an ad hoc group of bondholders representing around 55% of the outstanding bonds.
According to the official statement, the transaction recorded a participation rate exceeding 99% of the total outstanding bonds, with more than 97% of bondholders voting in favour. As a result, all existing bonds are set to be tendered and exchanged on the settlement date.
SriLankan Airlines Chairman Sarath Ganegoda said the strong participation reflects confidence among bondholders, noting that the transaction includes a 16% reduction on the outstanding claim.
He added that the successful completion of the restructuring marks an important step in the airline’s financial recovery and will allow the company to focus on future growth.
Secretary to the Treasury Dr. Harshana Suriyapperuma said the development helps normalise Sri Lanka’s engagement with external partners, noting that restructuring agreements covering 99% of the country’s public external debt have now been finalised.
He said the outcome strengthens Sri Lanka’s position in efforts to improve its credit rating.
The settlement of the exchange and tender offer is expected to take place on March 20, 2026, subject to the completion of standard conditions. (Newswire)