Sri Lanka’s macro-linked bonds (MLBs) are, in fact, not really macro-linked bonds. After 2027, they are standard fixed-income instruments which provide no help in the event of future shocks. The final restructuring terms are just left open until just after Sri Lanka’s IMF program ends, and the creditors and Sri Lanka have agreed that the final terms will largely be a function of Sri Lanka's dollar GDP between 2025 and 2027. […]