Srilankan Airlines has warned about its capability to make a coupon payment on a Singapore-listed bond, citing the deterioration in Sri Lanka’s economy. The payment relates to a $175m bond with a 7% coupon listed in Singapore, according to a filing with the Singapore stock exchange. The bonds term is to complete in 2024. The carrier missed a coupon payment due on 25 June, but still has a 30-day grace period. The bonds are backed by the Srilankan government, which holds 99.52% of the carrier. “The economic situation in Sri Lanka has directly impacted the ongoing operations of the Company,” says Srilankan. “In light of the current circumstances, the board considers it necessary to make use of the 30-day grace period to further determine the position of the company, both in respect of the upcoming coupon payment and its debt obligations more generally.” The carrier adds that Sri Lanka’s economic conditions have deteriorated rapidly owing to a “very low level” of foreign exchange reserves, the coronavirus pandemic, and Russia’s invasion of Ukraine. As such, Sri Lanka is “seeking urgent financial assistance from the International Monetary Fund.” <br/>