Wed, 22 Sep 2021 Today's Paper

Govt. doesn’t rule out selling a sovereign bond this year

14 January 2021 10:14 am - 0     - {{hitsCtrl.values.hits}}

A A A

The government said it doesn’t rule out the possibility of selling a sovereign bond this year as part of its foreign borrowings quota for 2021, amid the Treasury seeking to rollover part of its dollar-denominated debt. 


Addressing the weekly Cabinet press briefing last morning, Co-Cabinet Spokesman Minister Udaya Gammanpila said it is in the interest of foreign investors to subscribe to Sri Lanka issued bonds when the government seeks to rollover part of its debt. 


It could be relatively easier for countries such as Sri Lanka, which are part of the emerging and frontier market block to issue bonds to raise money in the international capital markets this year at favourable yields, as the global yields are at rock bottom or at negative levels as a result of the unprecedented monetary and fiscal stimulus unleashed last year to fight the economic fallout of the pandemic. 

Budget 2021 also gave hints to the country returning to the international capital markets to partly refinance its foreign borrowings this year, as it seeks to raise Rs.264 billion or approximately US $ 1.4 billion via commercial borrowings.

Sri Lanka has a billion dollar sovereign bond to be settled in July 2021.The gross foreign financing for 2021 is projected at Rs.606 billion, of which Rs.507 billion goes into foreign-denominated debt settlements. Sri Lanka plans to lean heavily on the domestic sources to finance its budget deficit in 2021, with over 70 percent or Rs.1,466 billion slated to be raised through non-bank borrowings, Sri Lanka Development Bonds and bank borrowings.

According to government estimates, Sri Lanka has outstanding foreign debt of US $ 6.9 billion due for settlement this year, composed of US $ 5.4 billion of capital repayment and US $ 1.5 billion of interest payments.

“The government is taking steps to settle this entire foreign debt stock without a dollar short when they come due,” Gammanpila affirmed.

 

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

  Comments - 0

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

 


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.

Reply To:

Name - Reply Comment




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

 


Waiver of registration questioned: Import of covid related drugs, products shrouded in controversy

The National Medicines Regulatory Authority- the independent authority that r

Mysterious disease killing pups!

A mysterious respiratory disease affecting puppies in the Central Province is

Jacqueline Fernandez; Lankan Star Shining in Indian Film Sky

Sri Lanka’s Jacqueline Fernandez who has made a name for herself in India

Young families share stories of pregnancy in a pandemic

For hundreds of expectant and new mothers, pregnancy and childbirth are nothi