Sri Lanka eyes Euro, Yen and Renminbi bonds to cut costs

ECONOMYNEXT – Sri Lanka will study the feasibility of selling Euro, Yen and Renminbi in a bid to reduce costs of foreign borrowing, the state information office said.

The cabinet of ministers had given the nod for the finance ministry to set up a committee to determine whether diversifying away from the US dollar can cut interest costs.

Sri Lanka has up to now only sold dollar-denominated sovereign bonds.

Central Bank Governor Indrajit Coomaraswamy said Sri Lanka wanted to sell a 250 million US dollar Panda (Renminbi) bond later in 2019.

The overall cost will be assessed with a Renminbi/dollar swap, he said. Sri Lanka’s rupee is loosely pegged to the US dollar and the dollar is also the intervention currency.

There were also offers to sell Samurai (Yen) bonds. (Colombo/Aug21/2018)

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