Sri Lanka could sell second sovereign bond in 2017 for 'liability management'
May 09, 2017 13:21 PM GMT+0530 | 1 Comment(s)
ECONOMYNEXT - Sri Lanka could go to the markets in 2017 with a second sovereign bond for better management of debt, Central Bank Governor Indrajit Coomaraswamy said.
Sri Lanka sold a 1.5 billion US dollar bond this month, at 6.2 percent where the premium to the US Treasury yield compressed by about 384 basis points.
Under current law the parliament sets a limit for foreign borrowings.
Coomaraswamy said Sri Lanka could go to the markets again this year, but current law has to be changed to allow the government to borrow for liability management.
At the moment, parliament authorises the Treasury to borrow for the budget through the so-called Appropriations Act for payments to be made during the year.
Sri Lanka has some bunched up liabilities on sovereign bonds from 2019. (Colombo/May09/2017)