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Sri Lanka gets ready to raise US$2bn in sovereign bonds

Jan 18, 2019 12:44 PM GMT+0530 | 1 Comment(s)

TIMING:  Sri Lanka bond yields soared after a political crisis in October. But yields have eased in the second week of January.

ECONOMYNEXT - Sri Lanka's cabinet of ministers has given the nod to raise up to 2 billion US dollars in sovereign bonds in 2019, State Minister of Finance Eran Wickramaratne said.

Sri Lanka will go to market with differed tenors and volumes at opportune times, he said.

A sovereign bond usually has a volume of at least 500 million US dollars.

Sri Lanka's sovereign bond yields had edged up in 2018 amid rising US rates, but yields soared to prohibitive levels of after President Maithripala Sirisena triggered a political crisis on October 26.

On January 14 Sri Lanka repaid a billion US dollar bond without rolling it over.

Sri Lanka bond yields have fallen sharply close to level seen before the so-called constitutional coup in October. (Colombo/Jan18/2018)


 

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1 Comments

  1. Tilak January 18, 05:56 AM

    Good necessary effort to avoid a default.Yet replacing one loan with another do not change the total picture for the country.But one thing that improve the country position is the real increase in its exports.Now last year as per Reuters the LKR got depreciated by 19 against the USD the benefit of this should have been mainly revived by the producers of those export like Tea,Rubber,Industrial exports, ext,ect,ect. Now is this the case?If not what are our top administrators doing?A sustainable solution cannot be created by those arrangers of loans but they can provide that very useful service of providing the necessary breathing space. Eventually the sustainable solution has to come from the ground. That is why the benefits has to be channeled in to those real value creators.

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