4 January 2018 12:16 am
AFP: Sri Lanka said yesterday it hopes to raise a record US $ 5.0 billion through bond issues this year as it seeks to repay its substantial debts.
The country has already been forced to go to the International Monetary Fund (IMF) for a bailout after accumulating foreign debts of nearly US $ 30 billion, according to the Central Bank figures.
Much of the money went towards ambitious infrastructure projects funded by Chinese loans under the previous government, which closely allied itself with Beijing.
But many of these have been unsuccessful -- including a huge airport in the home town of the former president.
Government spokesman Gayantha Karunaratne said the cabinet had approved the decision to raise US $ 5.0 billion through bonds.
Last year the government raised US $ 3.73 billion through dollar-denominated bonds.
It secured a US $ 1.5 billion bailout from the IMF in June 2016 following a balance of payments crisis.
The Central Bank of Sri Lanka said last week the economy grew at a slower than expected 3.3 percent in the third quarter of last year.
However, it expects the economy to expand this year with improvements in foreign capital inflows, agriculture and exports.