Sri Lanka settles US $ 1bn sovereign bond

The Central Bank of Sri Lanka said it today settled US $ 1 b billion sovereign bond scheduled to be matured on October 4 along with the due coupon payments on behalf of the Government of Sri Lanka.

“This settlement reconfirms the government’s unwavering commitment to honour its foreign labilities, thereby bolstering investor confidence and dispelling any concerns foreign investors may have in relation to the government’s ability and willingness to maintain its unblemished debt servicing record,” a Central Bank statement said.

The domestic foreign exchange market has already reacted positively to this settlement and other recent positive developments in the Sri Lankan economy.

With the envisaged inflows to the domestic foreign exchange market supported by proactive measures taken by the government and the Central Bank, the market sentiment is expected to further strengthen in the period ahead.