Sri Lanka to issue one billion dollar sovereign bonds

Sri Lanka Cabinet of ministers today granted approval to issue International Sovereign Bonds up to one billion US dollars in the international capital market in 2010.


The bonds at appropriate longer term maturity are to be issued under the supervision of Sri Lanka's Central Bank.
The government expects to use the proceeds of this bond issue to settle the high cost short term debt to improve the government debt management and maintain interest rates stability, the government announced .
The Central Bank issued a 5-year sovereign bond amounting to US$ 500 million with a yield of 7.40 percent in international markets in October 2009, on behalf of the government.