CBSL to issue development bonds worth USD 200 bn

COLOMBO (News1st): The Central Bank today advertised competitive bids for the sale of development bonds worth 200 billion US dollars today. The bonds are to be issued for a maturity period of 1 year, 1 year and 3 months, 2 years, 2 years and 3 months and 4 years under a fixed interest rate. Foreign Citizens & Entities, Non-Resident Sri Lankans, Dual Citizens, licenced finance companies and specialized banks are among the eligible investors. The move to issue development bonds comes as the country has to settle foreign debt worth 6.8 billion US dollars this year. "Which entity will be willing to lend money knowing that the country will not be able to repay it," opposition lawmaker Harsha de Silva queried. He pointed out that the interest rate stands at 31 percent in the secondary market. Opposition parliamentarian Patali Champika Ranawaka said that he cannot accept the figures rolled out by the government. "We can observe that at least 1040 billion would be spent on settling the interest connected to the debt," he noted. Ranawaka accused the government of allowing their henchmen to line their pockets with funds that could have ended up as revenue to the country.