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Sri Lanka accuses Hamilton Reserve of exploiting its national crisis

The Sri Lankan government has written to a US judge, requesting the dismissal of a case filed by the Hamilton Reserve Bank against Sri Lanka for defaulting on its debts.

The Sri Lankan government described the case as an “apparent attempt to gain leverage over a nation in crisis and jump ahead of other foreign creditors”.

Sri Lanka was due to pay 5.875% interest on its international sovereign bond on July 25, 2022 but failed to meet these payments due to its ongoing financial crisis.

Hamilton Reserve Bank has demanded the full payment of the $250 million owed, noting that interest amounts to over $7 million.

The bondholder has shot back at the Sri Lankan government maintaining that Sri Lanka’s default was engineered by people at the highest echelons of the country’s government, and that the Rajapaksa family was to blame.

Read more here.

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