The case filed in the US against the non-payment of ISBs turns out to be disadvantageous to Sri Lanka.

The United States District Court for the Southern District of New York has rejected the plea made by the government of Sri Lanka to dismiss the lawsuit filed against them by the Hamilton Reserve Bank of America over the non-payment of international sovereign bonds (ISB).

United States District Judge Dennis L. Court, while announcing the decision last March, stated that the arguments presented by the Sri Lankan government to reject the case filed against the default of a loan amounting to 250 million US dollars are not acceptable at all.

Hamilton Reserve Bank is the beneficial owner of the bonds issued by the Government of Sri Lanka. Sri Lanka, which is currently facing an economic and humanitarian crisis, defaulted on its foreign debt payments last year, and this bank instituted legal action to recover its principal amount and interest accrued against the breach of its agreements.

The bonds mature on July 25, 2022. Hamilton Reserve Bank alleged that as a result of the default, Sri Lanka owed $250.19 million in principal and $7.349 million in accrued interest.