Sri Lanka is said to be open to seeking a loan from the IMF according to a source. The nation had only recently ruled out an IMF bailout with its depleting forex reserves raising default risks on its July dollar bond repayment. Sri Lanka earlier this month, resorted to a currency devaluation of up to 15% to encourage remittances and investments into the country. Regarding its July dollar bonds, CreditSights analysts say that the probability of repayment is low.
Sri Lanka’s dollar bonds were slightly higher, trading at 42-47 cents on the dollar.