Sri Lanka’s sovereign debt restructuring is evaluated, arguing that standard net presentvalue analysis obscures true debt burdens by ignoring currency depreciation. Beyond advocating local currency-adjusted formulas to expose these hidden costs, the study demonstrates how predatory lending and inflated IMF targets artificially strengthened creditor bargaining power, ultimately minimising necessary haircuts while perpetuating economic instability.

Declaration of Interest: I have no relevant interests to disclose.This work........

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