Cabinet approval to raise $2 Billion through sovereign bonds - Eran

COLOMBO (News 1st) - The "Economynext" quoting the State Minister of Finance Eran Wickremeratne says Sri Lanka's cabinet of ministers has given the nod to raise $2 Billion through sovereign bonds. Economy next quotes the state minister saying:

"Sri Lanka will go to market with differed tenors and volumes at opportune times"

On the 14th of January Sri Lanka repaid a bond worth a billion USD without rolling it over. Sri Lankan bond yields have fallen sharply according to the Economynext. Recent research carried out by Colombo based think tank Verité Research has revealed that Sri Lanka getting caught in a debt trap has less to do with it's borrowing from China but more to do with its participation in international bond market activities. Accordingly, it has been identified that less than 15% of the external debt has resulted from the borrowings made from China.  The analysis made by Verité Research revealed that almost 50% of Sri Lanka's debt liabilities are due to international financial and bond markets.