According to Bloomberg, the Sri Lankan government has asked a US judge to dismiss the complaint filed by Hamilton Reserve Bank for bond default.
The government has asked for the case in New York over the country’s debt default to be dismissed, claiming that the litigation initiated by one bank is a “apparent attempt to gain leverage over a nation in crisis and jump ahead of other international creditors.”
Hamilton Reserve Bank, situated in the Caribbean islands of St. Kitts and Nevis, launched legal action in response to the country’s failure to repay a $1 billion sovereign bond.
The 5.875% International Sovereign Bonds were due for payment on July 25, 2022, which was two months ago.
When contacted by News 1st, the Finance Ministry verified that arguments about the relevant issue had been submitted.
According to court records obtained by News 1st, Hamilton Reserve Bank has charged Sri Lanka with owing it a total of US$257,539,331.25 under the conditions of the Bonds. The principal is $250,190,000, and the interest is $7,349,331.25.
The Hamilton Reserve Bank earlier said that Sri Lanka’s default was engineered by people at the highest echelons of the country’s government, and that the Rajapaksa family was to blame.