Sri Lanka still has access to international bond market despite attacks: CB Governor
May 21, 2019 09:37 AM GMT+0530 | 1 Comment(s)
ECONOMYNEXT - Sri Lanka still has access to international capital markets despite the uncertainty created by last month’s suicide bombings which killed over 250 people as bond yields are trending lower, Central Bank Governor Indrajit Coomaraswamy said.
"It is encouraging that the impact to date has been fairly well contained in the financial markets,” he told a public forum Friday.
"Since April 21 we’ve had four treasury bill auctions and on each occasion yields have come down,” Coomaraswamy told the forum to discuss the state of the economy as reflected in the bank’s 2018 annual report.
"In addition, Monday before last, there was the largest bond auction ever – the government issued the largest rupee denominated bond ever. There too the yield came down.”
In the case of Sri Lanka’s March International Sovereign Bond issue too, although yields rebounded after falling, they were within manageable levels.
"Yields as of April 18 come down by 70-80 basis points from the issuance price,” Coomaraswamy said.
"Since then, they’ve gone up by 50-60 basis points but we are still 20-30 basis points inside the issuance price.
"That's encouraging because as of now we are likely to have access (to the bond markets),” Coomaraswamy said. “We still need to raise about two billion dollars.”
On March 6th, Sri Lanka issued a 2.4 billion US dollar International Sovereign Bond with a dual listing on the London Stock Exchange and Colombo Stock Exchange.
"It seems the international capital markets are still open to us. The impact (of the attacks) on the financial markets has been contained."