A recent report from the renowned economic platform Bloomberg has sent shockwaves through Sri Lanka’s financial markets. Investors holding Sri Lankan dollar bonds are reportedly alarmed by the economic policies of Anura Dissanayake, the National People’s Force candidate, in the lead-up to the country’s presidential election.
Bloomberg highlights growing unease among investors, many of whom are rushing to sell their bonds due to the political uncertainty surrounding the election. This has triggered a surge in bond sales in recent days, with sellers scrambling to exit the market ahead of the election outcome.
Concerns are particularly focused on the potential for a change in political leadership, which could jeopardize ongoing debt restructuring negotiations. Investors fear that such a shift could derail discussions with creditors.
The anxiety stems from statements suggesting that opposition leaders, including Dissanayake, may seek to renegotiate the terms of Sri Lanka’s agreement with the International Monetary Fund (IMF) if they come to power. Bloomberg’s report emphasizes that Dissanayake’s stance against the current debt restructuring framework, which was agreed upon with multilateral lenders, has further exacerbated investor concerns.
