It also withdrew the rating on the US$ 175 million government guaranteed 7 percent unsecured bonds of SriLankan Airlines, due 25 June 2024, which was affirmed at ‘C’.

The rating on the bonds was driven by the unconditional and irrevocable guarantee of the government of Sri Lanka (Long-Term Foreign-Currency Issuer Default Rating (IDR): RD). SriLankan Airlines did not pay the bonds’ principal and interest due 25 June 2024, and is currently within the 30-day grace period.

The previous defaults of the airline on the bond’s coupon payments due 25 December 2023, 25 June 2023, and 25 December 2022 are continuing, with grace periods having expired