Sri Lanka to buy back debt

June 25, 2009 (LBO) – Sri Lanka’s public debt office has announced a ‘reverse auction’ to retire a part of the bonds maturing in August, which would help reduce bunching up of maturities, dealers said.

The banking system is also flushed with liquidly from central bank dollar purchases. The government is offering to buy back 7.6 percent coupon bonds due to mature on August 01, 2009 on June 29, a month earlier.

Sri Lanka’s bond yields have fallen from around 19.00 percent to 13.00 percent after the monetary authority cut rates.