Sri Lanka’s Dollar Bondholders Eye How Much Can Be Salvaged

The Sri Lankan government’s decision to halt debt payments in the face of growing political turmoil has sent investors scurrying to figure out just how much they might recover on $12.6 billion of foreign bonds -- and whether there’s profit to be made.

With the country battling power cuts, food shortages, and a currency in free fall, the bonds were already in a downward spiral as the government edged closer to its first default since independence from Britain in 1948.