Sri Lanka’s Central Bank Governor says arrangements being made to sell Renminbi and Yen denominated bonds
Governor of the Central Bank of Sri Lanka, Indrajit Coomaraswamy has reportedly said the country will commence the process of seeking legal approvals to sell Renminbi and Yen denominated bonds for liability management this month.
Accordingly, the Finance Minister is expected to submit the note and get approval from the Cabinet of Ministers next week.
“Since we’re doing it under the Liability Management Act, we have to get parliament approval,” Coomaraswamy has been quoted as saying by the local media.
“It may take 3-4 weeks. Then we can go to markets.”
Sri Lanka recently passed a law, allowing the Treasury to raise more debt than is required for the current year to smooth peak maturing debt.
The Samurai and Panda bond proceeds are to be used to repay debt in peak years.
The Governor has also said that proceeds of a billion US dollar loan from China are also expected shortly.
The statement by the Central Bank Governor has opened up an investment opportunity for foreign businesses looking at entering the Sri Lankan economy. The Sri Lankan economy is on a slow, yet firm growth path and therefore boasts of many investment opportunities. Interested foreign investors could look at investing in the Panda and Renminbi bonds when released in a few months time.
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