British Asia News Network- AD
Colombo: On Thursday with the strong backing from the IMF which last week lifted its suspension of a USD 1.5 billion bailout agreed in June 2016, Central bank collected USD 2.4 bn. The issue of USD 1 billion in bonds with five-year tenure and a 10-year USD 1.4 billion bond were hugely oversubscribed.
Three international rating agencies to downgrade Sri Lanka amid political turmoil between the president and the prime minister which foiled the government plans to borrow overseas.
Now since dispute is resolved IMF has revived a bailout program and government has resumed its international sovereign bond sales. The bonds were bought at an average yield of 6.58 per cent for the five-year tenure and 7.85 per cent for the 10-year bonds.
As per Finance Minister Samaraweera the power struggle between President and Prime Minister has costed the economy USD 1 billion in “capital flight” from debt and equity markets.