Govt. to borrow over Rs. 50 bn from local debt market

The Central Bank says it will re-issue Rs. 7,010 mn worth of two-year treasury bonds and Rs. 43,655 mn in treasury bills to the debt market, as part of its borrowing programme for August. The Central Bank says it will re-issue Rs. 7,010 mn worth of two-year treasury bonds and Rs. 43,655 mn in treasury bills to the debt market, as part of its borrowing programme for August. The bank’s Public Debt Dept., will also issue US$ 50 mn worth of Sri Lanka Development Bonds (SLDB’s) in August.

“Other than the SLDBs, the Government expects a sizable amount of further foreign funds during the month. These funds may be utilised to retire part of maturing debt and to reduce domestic borrowing,” the bank said Tuesday.

Of the Rs. 47,655 bn worth of treasury bills maturing, the bank has opted to re-issue only Rs. 43,655 bn worth of paper. The balance Rs. 4 bn will be retired.

The first auction for Rs. 3 bn in bonds will take place on July 29, with the settlement date fixed for August 2.

The bank said Rs. 2,010 mn worth of treasury bonds, which matures in Aug. may not be issued due to smaller volumes.

-LBO Newsdesk: LBOEmail@vanguardlanka.com