Sri Lanka sells Rs15 bn in 07 and 09 year bonds; rupee falls to record low

June 12, 2015 (LBO) – Sri Lanka has sold 15 billion rupees of seven and nine year bonds after calling bids for 12 billion rupees of bonds, the state debt office said.

The debt office on Friday sold 5.35 billion rupees of seven year bonds maturing on 01 October 2022 at a weighted average yield of 8.56 percent.

A nine year bond maturing on 15 March 2025 was sold at an average yield of 8.89 percent, raising 9.65 billion rupees.

The state debt office of the Central Bank offered 2.0 billion rupees in four year bonds, 3.0 billion rupees in seven year bonds and 7.0 billion rupees in nine year bonds.

All bids for the four year bond were rejected.

Meanwhile, the Sri Lankan rupee has fallen to a record low of 134 on Friday ahead of a possible Parliamentary election in the near future.

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Shee Lankan
Shee Lankan
7 years ago

The present govt is benifitting from the low interest rate regime and excess liquidity engineered by the MR govt. Heavy domestic borrowing ! What can we expect down the road ?

Sasantha
Sasantha
7 years ago
Reply to  Shee Lankan

These guys are trying to balance some high-interest loans taken by the MR regime using low interest loans.

Tilak
Tilak
7 years ago

At present USD index that measures it’s strength against a basket 6 major rivsl world currsncies is at around 95.5 whilst few weeks back was 93..Conciquanyly Hundreds of currancies fell against it.SL since few years back stsrted to use the strategy using borrowings to prop up currancy instead earning forex.Hig priced low yielding cspital expediture projects by borrowings too won’t help much.Back to drawing boards + methodical reoriented focus & methodical work may help.