A DIstrict Court in the United States has denied a motion by the Sri Lankan Government to dismiss a lawsuit brought by Hamilton Reserve Bank following the default by Sri Lanka on a sum of more than USD 257 million of bonds and interest that Hamilton had invested in.
Following the court order, the case will proceed to decide on whether the Sri Lankan Government must pay the outstanding amount.
Meanwhile, the experts pointed out that there is a risk of acquiring foreign assets of Sri Lanka if a foreign court decides against the Sri Lankan Government in a debt-related case.
They said that the seizure of a vessel belonging to Argentina in a port in Ghana in 2012 is an example.
The vessel was seized following a lawsuit filed by an American company in a Ghanaian Court regarding an incident of Argentina’s debt default.
