SriLankan Airlines has defaulted on a $175 million bond as it was unable to meet a $6 million interest payment due in December 2022.
The airline’s default on the 7% bond occurred as a result of a non-payment of the coupon which fell due on December 25, 2022.
“The board of directors of the company makes reference to the trust deed dated 25 June 2019 in relation to the 2024 Bonds and the coupon payment which fell due on 25 December 2022. The board hereby gives notice of an Event of Default pursuant to Condition 8(a)(i) of the 2024 Bonds as a result of the failure to pay the coupon due on 25 December 2022,” the airline said in a brief statement.
SriLankan Airlines Chairperson Ashok Pathirage assured that the airline will follow the treasury guidelines and the airline is engaging with the bondholders.
The government-guaranteed unsecured notes are due in 2024.