The government has decided to raise US$1600 million by issuing Sri Lanka Development Bonds through State banks for debt servicing, Daily Mirror learns.
The Cabinet of Ministers discussed this yesterday at their regular meeting with President Maithripala Sirisena in the chair. According to sources from the Cabinet, the Central Bank has been instructed to proceed with this move.
However, it is reported that Power and Energy Minister Ravi Karunanayake is reported to have protested the move at yesterday’s Cabinet meeting. The sources said Mr. Karunanayake raised an objection on the basis that it will affect the liquidity of the State banks such as the National Savings Bank.
Sri Lanka’s external component increased to the US $ 53487.28 million by the second half of last year. A foreign loan component will reach maturity in January and another in March. (Kelum Bandara)