Sri Lanka faces a battle between global bondholders and authorities as it seeks to restructure debt for IMF aid. BlackRock wants domestic debt holders to share losses, but officials are cautious about endangering financial stability. The government will give clarity on the issue by April. The restructuring of USD 84 bln of debt is critical for Sri Lanka to revive its economy and avoid the fate of Zambia, which has been unable to tap the global bond market after creditor talks stalled.