SriLankan Airlines and the Government of Sri Lanka have secured an agreement in principle with major bondholders to restructure $175 million in Guaranteed Bonds due in June.

The national carrier and the government confirmed the deal, which pertains to the bonds maturing in June 2024.

The agreement is a significant step but remains contingent on several approvals. 

It is subject to formal consent by the Cabinet, the International Monetary Fund (IMF), and the Official Creditor Committee (OCC).

The proposed restructuring is a key component of the ongoing financial stabilisation efforts for the airline.