Govt. announces acceptance of offers for 37% of eligible bonds

• Accounts to Rs.3.2tn, out of Rs.8.7tn worth T-bonds
• Offers of 84% of pension bonds accepted
• Will issue new bonds to eligible holders today, with settlement date set for September 14 

The government announced this week that offers for 37 percent of the aggregate outstanding principal amount of eligible bonds have been accepted. This indicates the possible completion of the Domestic Debt Optimisation.
The announcement came just days before the first review of the Extended Fund Facility by the International Monetary Fund.
The percentage of the aggregate outstanding principal amount of eligible bonds, for which valid offers have been accepted by the government, is 37 percent, which accounts to Rs.3.2 trillion, out of Rs.8.7 trillion worth treasury bonds (T-bonds).
Under the superannuation funds, 84 percent of the aggregate outstanding principal amount of eligible bonds, as of end-June 2023, has been accepted.

To achieve the participation threshold, the government accepted 100 percent of aggregate outstanding principal amount of eligible bonds from the superannuation funds necessary, subject to the final determination of the Inland Revenue Department.
Pursuant to the terms of the Invitation to Exchange, Sri Lanka has determined that the settlement date for the Invitation to Exchange shall be September 14, 2023.

The government said that on the settlement date, it would issue new bonds to eligible holders, in accordance with the relevant exchange form submitted by each such eligible holder.  Further, it will also pay each eligible holder of accepted offers the interest accrued and unpaid up to (but excluding) the settlement date on such eligible holder’s eligible bonds in Sri Lankan rupees.