Sri Lanka’s dollar bonds and stocks slid as leftist candidate Anura Kumara Dissanayake’s victory at the presidential election puts the nation’s bailout by the International Monetary Fund and debt deals at peril.
Bonds maturing in March 2029 declined 3.1 cents, the biggest drop in about two years, to 50.2 cents on the dollar on Monday. The S&P Sri Lanka 20 Index of blue-chip stocks slid 2% in early trading. The rupee traded steady.
Dissanayake has vowed to reopen negotiations with the IMF over its $3 billion bailout, which comes with spending cuts and tax hikes that proved deeply unpopular with voters.
Read more; https://www.bloomberg.com/news/articles/2024-09-23/sri-lanka-bonds-tumble-as-leftist-candidate-wins-presidency (Bloomberg)
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