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Case filed by Hamilton Reserve Bank: Clifford Chance seeks extension for SL

31 Jul 2022

  • Pretrial conference in US Court for case fixed for 26 Aug.
  • With requested extension, SL seeks time till 21 Sept. to respond
By Our Political Editor Legal advisor for Sri Lanka’s debt restructuring programme, Clifford Chance, has sought a 30-day extension of the pretrial conference fixed for 26 August on the case filed against Sri Lanka by the Hamilton Reserve Bank in a letter dated 26 July 2022, The Sunday Morning learns. In the letter seen by The Sunday Morning, the legal advisor has noted that, given that a 60-day period is usually granted for a foreign state to respond to a case filed, the 30-day extension being sought will give Sri Lanka time till 21 September 2022 to respond to the Complaint (counting from 22 June 2022).  According to public records published by the US District Court for the Southern District of New York, the initial pretrial conference in case no. 1:22-cv-05199 between Hamilton Reserve Bank Ltd. and the Democratic Socialist Republic of Sri Lanka was set for 26 August 2022 before Judge Denise L. Cote.  The letter sent last week by Clifford Chance addressed to US District Judge Cote stated: “A 30-day extension of time to respond to the Complaint in this matter; and (2) a comparable adjournment of the Initial Pretrial Conference scheduled for August 26, 2022.”  The letter has referred to the latest political developments in the country as one of the main reasons for the requirement of more time for Sri Lanka to consult the counsel.  “As the press has reported, the ongoing political and economic situation in Sri Lanka has intensified in recent weeks, including changes at the highest levels of Government. The former President resigned on or about 14 July 2022, and the new and current President, Ranil Wickremesinghe, was elected on 20 July 2022. Over the past week, a new Prime Minister has been appointed and there have continued to be changes in the Cabinet,” the letter stated.  “With the leadership changes, combined with the national focus on the current political crisis, it has not yet been reasonably possible for Sri Lanka to determine its position in this litigation or to adequately discuss the case with counsel. A 30-day extension of time in these proceedings would give new leadership sufficient time to consider the Complaint, to fully consult with counsel about the case, and to more meaningfully participate in an initial pretrial conference,” the letter noted.  The letter then went on to state: “Therefore, Sri Lanka requests a 30-extension of time to respond to the Complaint. Assuming service on 23 June 2022, Sri Lanka’s responsive pleading is currently due 22 August 2022. See 28 U.S.C. 1608(d) (providing 60 days for foreign states to serve responsive pleading). With the requested extension, Sri Lanka’s deadline to respond to the Complaint would be 21 September 2022.”  Clifford Chance had also noted: “Sri Lanka also requests an adjournment of the Initial Pretrial Conference currently scheduled for 26 August 2022. We propose adjourning that conference approximately 30 days, to a date and time convenient for the Court,” adding, “This is Sri Lanka’s first request for the relief requested herein. Plaintiff does not oppose the requested extension.”  The Sunday Morning reliably learnt that Sri Lanka will receive the requested 30-day extension as the plaintiff was unlikely to raise objections since it was the first time an extension has been requested by the respondent.  Hamilton Reserve Bank – headquartered in St. Kitts and Nevis, a Commonwealth nation in the Caribbean Islands – holds more than $ 250 million of Sri Lanka’s 5.875% ISBs that were due 25 July and thus filed suit on 22 June in a New York federal court seeking full payment of principal and interest.  


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