Sri Lanka has borrowings of USD1.5 bln in pipeline for next year

Dec 09, 2015 (LBO) – Sri Lanka may go to international markets to raise up to 1.5 billion dollars next year for budgetary financing, in line with the amount raised this year, a central bank official said.

Sri Lanka raised 1.5 billion dollars in a 10-year sovereign bond issue in October with a coupon of 6.85 percent for budgetary financing and to increase foreign reserves.

This was Sri Lanka’s ninth US Dollar benchmark as well as the largest offering in the international bond market since 2007.

After ending a war with Tamil Tiger separatists in 2009, the island has increasingly gone to international markets for its borrowing program.

This is also due to less opportunities for concessional borrowing tied to rising per capita incomes.