Sri Lanka’s debt restructuring distinguishes itself from others by its complexity due to a particularly diverse creditor landscape and novel instruments issued in the restructuring. Not eligible for the G20 Common Framework for Debt Treatments, Sri Lanka had to navigate the challenges of a diverse creditor landscape, requiring complex coordination across many stakeholders. The majority of official debt was held by non-traditional creditors outside of the Paris Club and domestic borrowing played an important role in Sri Lanka’s overall debt. Commercial creditors were particularly interested in new and complex instruments that would share up- and downsides to the macroeconomic framework and would offer additional debt relief for implementing governance reforms.  […]