SL bonds under fire

Monday, 5 July 2021 03:55 - - {{hitsCtrl.values.hits}}

London (Reuters): Friday saw the worst day for Sri Lanka’s Government debt markets since October, with one bond due to be repaid next July falling more than four cents and a number of others dropping between two and four cents.

“If Sri Lanka is to avoid a default in the medium-term, it needs an IMF program that will help anchor expectations of fiscal consolidation,” said Legal and General Investment Management Head of Emerging Markets Credit Strategy Raza Agha.

Head of Barings’ Global Sovereign Debt and Currencies Group Ricardo Adrogue added that it was encouraging though that the Government seemed determined not to default.

“That is a big plus, but the (debt) numbers however are eye-opening,” he said, highlighting how the country spent roughly 50% of Government revenues on debt payments.

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