Sri Lanka Bondholders and Government Hold New Round of Talks.

Sri Lanka's private creditors and government officials are currently in their third round of talks to restructure $12.6 billion in defaulted bonds. This round of negotiations follows a preliminary agreement reached in July and marks the third time bondholders have been restricted from trading the securities during talks. The government aims to reach a final agreement before the presidential election on September 21, and a statement with details on the ongoing negotiations may be released next week. The July deal included a 28% reduction in the bonds' principal and the issuance of macro-linked bonds tied to economic growth. The agreement requires the support of the International Monetary Fund and bilateral creditors such as China and France. The election is the first since the 2022 economic crisis and is expected to be a close race between three candidates. [Extracted from the article]