SriLankan Airlines has announced a default on a December coupon payment on its 175 million US dollar sovereign guaranteed bond with the expiry of a grace period.
SriLankan Airlines said in a Singapore Exchange filing that it was giving notice of an event of default, after failing to pay the December 2022 interest, of which notice was given earlier.
“We are engaging with the bondholders to find a solution,” Chairman Ashok Pathirage said.
SriLankan is guided by the advisors to the goverment on re-structuring debt, he said.
SriLankan paid one coupon due in mid 2022 after the government defaulted on its external debt as the airline was keen to maintain operations its standing among suppliers.
But it later told bond holders that from December the coupon will not be paid.