Sri Lanka is preparing legislation for a bond swap program for pension funds. The deadline for switching defaulted treasury bonds has been extended to August 28. Funds can either opt for new debt or face a tax rise from 14% to 30%. This restructuring is critical for discussions with external creditors and continuing the IMF program. Sri Lanka’s 7.55% 2030 USD bond increased by 0.5 cents to 45.2 cents on the USD, marking a 15% surge since the end of June.