Lanka aims better credit rating

21 May 2011 12:40 pm - 5 - {{hitsCtrl.values.hits}}

A A A

Sri Lanka is hoping for a better credit rating to boost its plans to sell a $1 billion sovereign bond this year, an official said Saturday, ahead of a visit by ratings agencies.

The Central Bank's deputy governor Dharma Dheerasinghe said the agencies, Standard and Poor's and Fitch and Moody's will begin a visit to the island next Monday to assess the its financial health.

"We have a better credit story to tell now" Dheerasinghe told AFP, comparing his country's economic fortunes to those during the decades-long ethnic conflict with Tamil Tiger rebels which ended in May 2009,

"The economy is growing steadily," he said. "We hope there will be an improvement in our rating after the review."

The island's $50-billion economy is tipped to grow at a record 8.5 percent this year, up from a 32-year high of 8.0 percent posted in 2010.

The bank has set its sights on Sri Lanka achieving a rating of at least "BBB" -- just one notch below investment grade -- by 2014 to allow it to borrow at cheaper interest rates on the international market.

Sri Lanka currently has a "B" grade -- five notches below investment grade -- from global ratings agency Standard and Poor's.

The central bank governor said the planned bond will carry a tenure of 10 years or more. He added roadshows have been lined up in June in London, Singapore and New York.

The bond, which will help pay off debt and raise cash for infrastructure investments, is expected to be issued in July but no firm date has been set.

It will be Sri Lanka's fourth international bond offering, known as a eurobond, since it first tapped foreign capital markets in 2007.

The island has also raised money through short-term loans and syndicated loans to meet its budgetary needs. (AFP)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 5

Tamilan Saturday, 21 May 2011 09:42 PM

What about human rights rating?

observer Sunday, 22 May 2011 05:08 AM

Comparing to other "developed nations" A+

Gayan Samarasekara Sunday, 22 May 2011 05:35 AM

One shot upgrading from B to BBB is a daydream.

Suduloonuwa Sunday, 22 May 2011 06:52 AM

If the economy is growing why should one borrow?? on credit???

wara Sunday, 22 May 2011 08:27 AM

Mr Cabraal is a magician to come up with good figures, don't worry about it! though god knows from where he gets his figures?

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Lanka aims better credit rating

Comments - 5

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Ranil Wickremesinghe caravan moves on despite barking dogs

Sri Lankan among NASA’s new crew for next simulated Mars journey

Street food vendor arrested for verbally harassing foreigner

Two racing drivers arrested over Fox Hill tragedy

Uma Oya Development Project inaugurated

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

No footboard riding allowed, no liability for accidents: Railways Department

Six patients claim Rs.600 million from Keheliya and others for permanent loss of sight

SLPP, UNP initiates action for forming broad alliance

Here is the way!

Pakistan lose key players for last two T20Is against New Zealand

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident