Sri Lanka to begin Panda, Samurai bonds sale process this month

ECONOMYNEXT – Sri Lanka will start the process of seeking legal approvals to sell Renminbi and Yen denominated bonds for liability management this month, Central Bank Governor Indrajit Coomaraswamy said.

The finance minister has to submit the note and get approval from the cabinet of ministers, which may happen next week.

"Since we’re doing it under the Liability Management Act, we have to get parliament approval," Coomaraswamy said.

"It may take 3-4 weeks. Then we can go to markets."

Sri Lanka recently passed a law, allowing the Treasury to raise more debt than is required for the current year to smooth peak maturing debt.

The Samurai and Panda bond proceeds will be used to repay debt in peak years.

The proceeds of a billion US dollar loan from China are also expected shortly. Governor Coomaraswamy said last week was a holiday in China, and it may come this week.  (Colombo/Oct09/2018)

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