Thu, 21 Oct 2021 Today's Paper

Banks barred from buying Lankan sovereign bonds

13 December 2020 11:16 pm - 2     - {{hitsCtrl.values.hits}}

A A A

The Central Bank has barred licensed commercial banks and National Savings Bank (NSB) from purchasing Sri Lanka international sovereign bonds (ISBs) for a period of six months unless such purchases are funded with new dollars sourced abroad.

The Central Bank said the Direction would be implemented with immediate effect.

The Central Bank said the move was aimed at easing the pressure on the exchange rate and the stress on financial market due to impacts of COVID-19 outbreak.

Banks buying ISBs, which are trading at steep discount, could trigger forex shortages amid lower rates and liquidity injections to the economy by way of stimulus.

 

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 - 2

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.

 

  • roni Tuesday, 15 December 2020 09:23 PM

    What a sad state of affairs, it is simply foreign funds that they after so the rating agencies like Fitch are spot on.

    Punchi banda Thursday, 17 December 2020 04:35 AM

    ISBs are trading at a Steep discount is because the holding organisations have realised that Sri Lanka will not be able to honour the bonds when due and like Lebanon will eventually become a bankrupt failed state.


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.

 


Spotlight on Attorney General’s Department and Public Service Commission

Certain acts by the Attorney General’s Department and the Public Service C

How a 19-year-old TikToker is helping bring back the Woolly Mammoth!

A young TikTok star and his friends are helping an ambitious gene editing pro

Unmasking Sri Lanka’s Pyramid Parasites

A Financial Cancer Spreading Through Sri Lanka Again...

Writing Letters to Michele Bachelet Causes Turmoil Within the TNA

The Tamil National Alliance(TNA) is currently in a state of great turmoil. Th