Sri Lanka's dollar bonds slip ahead of Saturday election
Updates throughout, adds analyst comments, background
LONDON, Sept 20 (Reuters) -Sri Lanka's sovereign dollar bonds slipped more than 1 cent on Friday in their last trading session before the country's tightly fought presidential election.
The latest losses wipe out most of the gains the bonds enjoyed on Thursday, when the country reached an 11th hour draft deal with creditors to restructure $12.5 billion of its international bonds.
Shorter-dated maturities saw the biggest drops, with the 2025 bond down 1.2 cents to be bid at 52.654 cents in the dollar, Tradeweb data showed. USY8137FAE89=TE
The country's bonds have been on a roller coaster in recent weeks.
Sri Lanka, which defaulted in April 2022, has struggled to make progress on with bondholders on its debt restructuring but finally clinched a draft deal - or agreement in principle - on Thursday following a third round of formal negotiations.
However, Colombo still needs formal approval by the country's official creditors and the International Monetary Fund which has extended a $2.9 billion bailout to the country.
The outcome of Saturday's election could complicate the draft deal, creating further uncertainty for bond investors.
"Implementing the agreement-in-principle could still face delay or derailment, depending on the outcome of the election
results," said Nishant M Poojary at JPMorgan in a note to clients.
Two of the leading presidential contenders, opposition leader Sajith Premadasa and Marxist-leaning parliamentarian Anura Kumara Dissanayake, have expressed interest in reworking Sri Lanka's IMF loan.
But doing so could have wide-ranging consequences, analysts warned.
"Renegotiating the terms of the (IMF) deal would risk undermining investor confidence, which could cause the currency to weaken, inflation to rise and prompt the central bank to raise interest rates," said Gareth Leather, Senior Asia Economist at Capital Economics.
Reporting by Karin Strohecker; Editing by Amanda Cooper and Christina Fincher
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
