FinMin to borrow US $ 300mn from state and foreign banks to settle bond payments

The Finance Ministry will be resorting to borrowings from state banks and offshore banking units to cover just under half of the Sri Lanka Development Bond Maturities during the first quarter of 2018.
According to Finance and Mass Media Acting Minister Eran Wickramaratne, around US $ 732 million is required for interest payments and to roll over foreign debt.

“The cabinet of ministers approved the proposal to provide funds up to US $ 300 million through the Foreign Currency Banking Units of People’s Bank and Bank of Ceylon or Offshore Banking Units,” the cabinet office said yesterday.

The Central Bank was planning to issue a US $ 2 billion sovereign bond in ‘early 2018’ to refinance the maturing debt but it has not materialized despite the first quarter of 2018 nearly at its end.

The domestic debt maturities will hit a peak this year, while foreign debt will peak from 2019 until 2022.