Sri Lanka to go to markets after IMF meetings

Feb 29, 2016 (LBO) – Sri Lanka may go to international markets to raise up to 1.5 billion dollars this year after gauging the outcome of meetings with the International Monetary Fund, a central bank official said.

Sri Lanka will hold discussions with the IMF in March and April on a support facility for its balance of payments, and for an endorsement of the government’s plan for fiscal consolidation.

In December, a central bank official said Sri Lanka could raise up to 1.5 billion dollars this year in line with borrowings last year.

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.