Debt-stricken Sri Lanka is in talks with its international bondholders to restructure its debt to link it to its economic performance and potentially also to anti-corruption reforms.

Creditors have proposed a new bond of $9 billion, with payments adjusted based on the performance of Sri Lanka’s GDP in 2028.   

Sri Lanka held talks with a group of its bondholders in London in late March, and said it is looking to “reach common ground in the next few weeks” on April 16.

The GLBs, if accepted, would