ECONOMYNEXT - Sri Lanka's parliament has given the nod to raise 310 billion rupees to manage domestic and international debt, the central bank said.
The resolution will give powers for authorities to do the following:
(a) buy-back or early repayment of identified loans,
(b) issue of new loans at low interest rates in place of outstanding loans obtained at higher interest rates,
(c) lengthening of the maturity or repayment period of identified loans on new terms by way of switches and /or exchanges,
(d) consolidation or conversion of identified loans into new loans on new terms,
(e) raising of new loans outside the given financial year’s borrowing limit approved by the Parliament under the Annual Appropriation Act to benefit from prevailing favorable market conditions and to use such proceeds for early repayment of existing loans obtained at unfavorable terms,
(f) maintenance of dedicated bank accounts, i.e. in rupee and foreign currency, to ringfence the money so raised under the resolution passed by the Parliament under section 3 of ALMA, and
(g) invest surplus funds in above mentioned bank accounts in appropriate liquid assets.