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Sri Lanka calls proposals for US$500mn in foreign currency loans

ECONOMYNEXT – Sri Lanka has called proposals from investment banks for up to 500 million US dollars in foreign currency loans with a term of at least one year.

The foreign currency term could have a fixed or floating rate based on the London Interbank Offered Rate, the Finance Ministry said in a public notice.

The proceeds will be used for “purposes of financing expenditures as approved in the vote on account for the fiscal year 2020,” the notice said.

Foreign banks, investment houses and domestic banks could apply.

Proposals could be submitted in multiples of 50 million dollars. Interest would be paid half-yearly.

Sri Lanka is expecting the budget deficit to rise to 8.5 percent of gross domestic product in 2020, amid tax cuts and a Coronavirus slowdown. (Colombo/June17/2020)