Government bonds go online in Sri Lanka

June 7, 2006 (LBO) – Sri Lanka Wednesday formally launched an electronic trading platform for government bonds, with the aim of broad basing the ownership of treasury securities, the Central Bank said. Developed by Bloomberg, a financial market specialist, Sri Lanka kicked off a soft launch on May 24 to become the second country behind Singapore to adopt the similar trading platform.

The e-bond trading platform — ‘Lanka Primary Dealer Bloomberg BondTrader’ or LPBT enables multi-dealer pricing display, order routing and deal confirmation.

“It ensures transparency and generates trade efficiency through price discovery and execution of trades of government securities, which hitherto took place through brokers and telephones requiring the participants to pay a fee,” the bank’s public debt department said.

This process was also time consuming and inconvenient to the participants.

Traders can now punch in firm quotes and execute the transactions without any additional costs, the statement said. Bloomberg is due to make a formal presentation to market players on June 8.