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Sigh of relief for Lanka as US raise debt ceiling
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The deal between US President and the Senate to increase the country’s debt ceiling has come as a sigh of relief for Sri Lanka which has invested an amount of its foreign reserves in US treasury bonds, a minister said yesterday.
The US government managed to avert a federal debt default by agreeing to increase the debt limit. Economic Development Minister Basil Rajapaksa told the Daily Mirror that Sri Lanka closely observed the developments in the US since the Central Bank had invested in bonds of that country.
The Minister said had the debt crisis worsened, the US would not be able to pay for Sri Lanka’s investments in this regard.
“Therefore, the resolution of this problem in the US is a sigh of relief for us. We observed developments in the US closely during the last few days,” he said.
The BBC said, in a news report posted on its website, that the US Congress passed a bill to reopen the government and raise the federal debt limit, with hours to spare before the nation risked default.
“The Democrat-controlled Senate passed the measure by 81 votes to 18 and the Republican-controlled House of Representatives by 285 votes to 144,” the BBC said in the same report.
However, details were not available about the amount of Sri Lanka’s reserves invested in US bonds. The Central Bank is supervising such investments. (Kelum Bandara)
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