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The two-year bond will be linked to the six months London interbank offered rate or LIBOR.
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rnThe government last year said it was raising up to US$ 250 mn through the bond issues to help bridge the yawning budget deficit. However, only US $ 158.5 million two year bonds were issued.

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rnEarlier this year in an interview with LBO Central Bank quote s Superintendent Public Debt, Dharma Dheerasinghe The Cabinet has given the Bank the go ahead to complete the entire issue by October this year.rn

rnThe Central Bank issued three tranches worth US$ 158.5 million two-year bonds last year.

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The issue carried a floating rate of 175 basis points above the six months London interbank offered rate or LIBOR with a put option.
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rnrnThe market snapped up the first US$ 50 million tranche on its opening day on November 5. The bank later accepted the US$ 58.

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5 million surplus as a second tranche. The second issue was offered at 225 basis points above the LIBOR.
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