Hiran H.Senewiratne
The government is looking to tap global capital market to borrow up to US$ 1.5 billion through sovereign bonds before the end of April to cut commercial debts in government,sources said.
"The new government has said the real total debt at the end of 2014 including state-owned enterprises' borrowing was 88.9 per cent of gross domestic product (GDP), over the previous government's official figure of about 75 per cent of GDP, a Ministry of Finance spokesman said.
Sri Lanka will go to the market within the 100 days set out in the new government's programme. Sri Lanka has borrowed $5.5 billion through seven sovereign bonds since 2007 and it has tightened its yields. It last went to the market in April 2014 and raised $500 million by selling 5-year euro bonds at a yield of 5.125 per cent a year.
Heavy commercial borrowing for infrastructure, most of it from China, under former President Mahinda Rajapaksa has put the new government under pressure to pay debts.Finance Minister Ravi Karunanayake told at a seminar that main objective of this issue is to cut the $76 billion economy's fiscal deficit to 4.4 percent of GDP this year, the lowest since 1977, lower than last year's 5.2 per cent with Rs 258 billion ($1.94 billion) foreign borrowing.
He said they will ensure they will not be stipulating conditions on us. We expect the maximum that can be given at the best possible rate," Karunanayake said.
The government is looking to tap global capital market to borrow up to US$ 1.5 billion through sovereign bonds before the end of April to cut commercial debts in government,sources said.
"The new government has said the real total debt at the end of 2014 including state-owned enterprises' borrowing was 88.9 per cent of gross domestic product (GDP), over the previous government's official figure of about 75 per cent of GDP, a Ministry of Finance spokesman said.
Sri Lanka will go to the market within the 100 days set out in the new government's programme. Sri Lanka has borrowed $5.5 billion through seven sovereign bonds since 2007 and it has tightened its yields. It last went to the market in April 2014 and raised $500 million by selling 5-year euro bonds at a yield of 5.125 per cent a year.
Heavy commercial borrowing for infrastructure, most of it from China, under former President Mahinda Rajapaksa has put the new government under pressure to pay debts.Finance Minister Ravi Karunanayake told at a seminar that main objective of this issue is to cut the $76 billion economy's fiscal deficit to 4.4 percent of GDP this year, the lowest since 1977, lower than last year's 5.2 per cent with Rs 258 billion ($1.94 billion) foreign borrowing.
He said they will ensure they will not be stipulating conditions on us. We expect the maximum that can be given at the best possible rate," Karunanayake said.
www.dailynews.lk
No comments:
Post a Comment