Sri Lanka mulls 10-yr sovereign bond

Mar 23, 2012 (LBO) – Sri Lanka is considering issuing a 10-year sovereign bond when its debut 500 million five-year dollar bond matures this year, Treasury secretary P B Jayasundera said. The debut bond was meant to help the private and banks go for longer maturity funding, he told a news conference.

The treasury is also looking at issuing a bigger bond worth 750 million or even one billion dollars when the initial bond matures and is refloated, he said.

If so, about three billion worth of bonds on varying tenures would mature at different intervals.

Jayasundera said there was no harm in borrowing as long as the government had the capacity to repay.

“As long as the debt is affordable, non-commercial or well within income generation (we should borrow),” he said.

“No one runs a business on equity alone. An economy needs credit to grow.”