Home / Front Page/ SL to repay $1 b foreign debt from reserves: CB Chief

SL to repay $1 b foreign debt from reserves: CB Chief


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 15 January 2019 01:01

Facebook

Reuters: Sri Lanka will repay a $1 billion five-year sovereign bond due on Monday entirely from its reserves, Central Bank Governor Dr. Indrajit Coomaraswamy said, after three of its state-run banks failed to raise funds from foreign sources. 

The Government is struggling to repay its foreign loans, with a record $5.9 billion due this year including $2.6 billion in the first three months alone. 

Officials said a plan to raise funds through state banks for full repayment fell through because of poor investor appetite for further Sri Lankan debt, forcing the recourse to reserves. 

Coomaraswamy said the loan was “being settled today.” The country’s foreign reserves stood at just $6.9 billion at the end of 2018, down from $7.9 billion in October before a political crisis that caused all three major ratings agencies to downgrade the country’s debt. 

Coomaraswmy said the $1 billion outflow from the reserves would be replenished with a combination of swaps, term loans and international sovereign bonds. 

Investor confidence took a hit when President Maithripala Sirisena abruptly sacked Prime Minister Ranil Wickremesinghe in October and replaced him with pro-China former President Mahinda Rajapaksa and dissolved the Parliament. 

The country’s top court ruled the Parliament dissolution was illegal and Wickremesinghe was restored to power in December - but the seven-week-long crisis hurt the rupee and drove sovereign bond yields higher, straining Government finances.

 

IMF meetings postponed


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Is Sri Lanka under the dominance of a powerful cabal?

Saturday, 15 June 2019

There is a saying that “A fish rots from the head”. That is the expression used when a country’s leadership is seen as responsible for violence and unethical behaviour of its supporters and the citizens in general - agitating the majority commu


Behind the scenes

Saturday, 15 June 2019

We see and hear many things happening on the stage. Some we only hear about and do not see. More things are happening without being seen clearly. An observation with extensive view and survey will be the only means of bringing to light the true natur


My way or the Huawei: global battle for 5G dominance and its impact on Sri Lanka

Friday, 14 June 2019

The ongoing battle between the US and the Chinese tech giant Huawei is escalating due to both parties’ eagerness to dominate 5G technology, the next major global technological revolution. It will define the future of the World Wide Web, creating a


Plunder of public property by rulers

Friday, 14 June 2019

While the failure to build the modern nation has been the prime factor that had caused the wretchedness of Sri Lanka, plundering of public property by rulers when they are under their custody can be considered the next vital factor that had exacerbat


Columnists More