Global Bondholders Look to Pick Up the Pieces in Sri Lanka One month after Sri Lanka defaulted on its sovereign debt for the first time in its history, global bondholders are looking to pick up the pieces through various forms of recourse. This week, numerous foreign holders of Sri Lankan debt began to take action in an attempt to recoup funds from the nation of 22 million with an economy that recently appointed Prime Minister Ranil Wickremesinghe said has «completely collapsed». Earlier this week, Hamilton Reserve Bank – holder of more than $250 million of Sri Lanka’s 5.875 percent bond due July 25 – filed a legal suit in a New York federal court seeking full payment of principal and interest. The Saint Kitts and Nevis-headquartered lender accused Sri Lanka of excluding certain bondholders from an announced restructuring, underlining that the default is being «orchestrated by officials at the highest levels of government». Separately, more than 30 asset managers holding international Sri Lankan bonds formed a creditor group to start debt restructuring talks with the island nation.