Wed, 01 Dec 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.

 

  Comments - 2

  • 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





Focus on Laggala Gem mining big shots bigger than the law

The truth is now being uncovered regarding an illegal mining racket in state

How and why the TNA was formed twenty years ago

The Tamil National Alliance (TNA) is now twenty years of age. The premier pol

India lays emphasis on culture diplomacy with Sri Lanka

Indian Prime Minister Narendra Modi wanted to inaugurate the Kushinagar Inter

Bittersweet memories of a ‘City that never slept’

At the heart of Eastern Province lies a now abandoned ghost town punctuated w