Sri Lanka was sued in the United States District Court in Manhattan by a private bondholder over the country’s purported failure on a $1 billion sovereign bond due next month.
The claim was filed Tuesday in a New York federal court by Hamilton Reserve Bank Ltd., which holds more than $250 million of Sri Lanka’s 5.875 percent International Sovereign Bonds due July 25.
Sri Lanka had stopped servicing its national debt and had fallen behind on two additional notes, according to Hamilton Reserve Bank Ltd, which sought an immediate payment of $257.5 million in principle plus interest.
A staff team from the International Monetary Fund (IMF) arrived in Sri Lanka early this week to resume discussions on a rescue proposal.
