Sri Lanka repays US$ 1 Billion Bond Source:Dailynews Sri Lanka has transferred funds to repay a $1 billion bond by the Tuesday deadline, keeping intact its reputation for honoring debt as concern mounts about the nation’s overseas financing. The money was transferred Monday, Ajith Nivard Cabraal, the State Minister for Money and Capital Markets, said by phone. Moody’s Investors Service placed Sri Lanka’s ratings under review for a downgrade last week, citing its assessment of the country’s increasingly fragile external liquidity position and the risk of default. “I have been saying right throughout that we will pay. Unfortunately some bondholders panicked due to rating actions and analyst reports and sold off at huge discounts,” Cabraal said in a separate interview Sunday. “Those who came last profited most.” The yield on the 6.25% Sri Lanka dollar bond maturing Tuesday slumped to 500% earlier on Monday,from 628% last week. The yield on ...

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Revenue decline puts pressure on govt’s fiscal management-by Sanath Nanayakkare Moves underway to strengthen gross official reserves Seeking support from IMF ruled out Source:Island As government revenues have fallen below expected levels, fiscal management of the government is under pressure, Ajith Nivard Cabraal, State Minister of Finance, Capital Markets and State Enterprise Reforms said in Colombo yesterday. He made this remark while speaking at a media briefing held at the Ministry of Finance. “Although a sovereign bond of USD one billion needs to be settled this month, the actual outflow would be USD 700 million as Sri Lankan citizens own a share of USD 300 million of it. The current reserves are at USD 4 billion. After making this payment, the reserves will technically remain at USD 3 billion. Agreements have been arrived at with People’s Bank of China for a SWAP loan of USD 1.5 billion. In addition, the ...

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