Cabinet nod for doubling SLDBs

The Cabinet yesterday approved an increase to the limit of Sri Lanka Development Bonds (SLDBs) issued under the implementation of the Public Debt Program 2017.

The Government said considering the low liquidity situation and interest rates of Treasury bills and Treasury bonds, the Cabinet approved the proposal made by Finance Minister Ravi Karunanayake to increase the limit of issuing SLDBs from $ 1.5 billion to $ 3 billion including development bonds set to expire this year. As per the 2017 Budget, approved Government borrowing was Rs. 1.57 trillion of which Rs. 1.3 trillion was through local sources and Rs. 450 billion comprised foreign borrowing. 

Under the latter, an exercise on a Rs. 1.5 billion sovereign bond is underway and $ 1.5 billion through SLDBs.

The latest Cabinet move is in view of low liquidity and the upward trend in Treasury bond and bill rates.