Under the terms of the default or ‘debt suspension,’ SOEs are not required to service loans, even if they have the cash to repay them. The

Under the terms of the default or ‘debt suspension,’ SOEs are not required to service loans, even if they have the cash to repay them. The interest income from this extra cash shows up as profit on their balance sheets.

The reality is, once Sri Lanka declared out of bankruptcy, these SOEs will have to repay the loans with additional interest.