Government to borrow up to USD300mn from banks in 1Q 2018

Mar 21, 2018 (LBO) – Cabinet approval has been granted on Tuesday to obtain up to a maximum of 300 million US Dollars from banks. Accordingly, Government will borrow up to 300 million US Dollars from Bank of Ceylon, People’s Bank and other registered foreign banks in Sri Lanka.

"Since it is advantageous to Release Sri Lanka Development Bonds with a relatively high cost and maturing in 2018, Cabinet of Ministers approved the proposal to provide funds up to US $ 300 million through the Foreign Currency Banking Units of Peoples' Bank, Bank of Ceylon and Offshore Banking Units." a cabinet decision said. Government has estimated that 732 million US Dollars will be needed for the foreign debt repayments in the first quarter of this year.

Government’s maximum borrowing limit for this year is 1,895 billion rupees.

From this 1,313 billion rupees will be obtained from local sources and 580 billion rupees will come from foreign sources. The total estimated foreign debt service payments will be around 445.82 billion rupees in 2018. Foreign currency debt service payments will be around 842.96 billion rupees.