Sri Lanka to raise Rs310bn for liability management: CB Governor
ECONOMYNEXT – Sri Lanka will soon go to parliament to seek permission to raise 310 billion rupees for liability management under a new law, over and above the budget deficit, Central Bank Governor Indrajit Coomaraswamy said.
"And that will give us the headroom to progressively build buffers to address in particular the external financing requirements, that are coming up ahead," he told an economic forum organized by Asia Securities, a Colombo-based brokerage.
Last week China Development Bank had given a billion US dollars in a below market 8-year loan for Sri Lanka.
"That was part of this year’s borrowing requirement," he said. "That can be up scaled to 500 million by by the active liability management law.
"We are exploring, Samurai and Panda bonds and Sukuk bonds."
"We will go into the market for an ISB (International Sovereign Bond) relatively quickly as well.
"There is two three billion resource mobilization that the government and central bank are planning to raise and we are confident that with that we have the fire power to meet our external debt obligations.
"Sri Lanka has never missed a single payment and that is not something we want to allow to change."
He said the central bank also wanted some money to prevent a ‘disorderly adjustment’ of the exchange rate. (Colombo/Oct23/2018)