Sri Lanka is to raise $1 billion from the international markets through a 10-year sovereign bond issue, government sources said here today.
This is the fourth sovereign bond issue by the Government since 2007. The bonds carry a coupon rate of 6.25 per cent a year.
The Sri Lankan Government has conducted two $500 million and a billion dollar bond issue previously.
News of the bond issue came after the island’s economy received a ratings upgrade from Fitch, Moody’s and Standard & Poor earlier in the week.
Sri Lanka’s economic outlook was raised to positive from stable.
The Economic Development Minister, Mr Basil Rajapaksa, who is the brother of the Sri Lankan President, Mr Mahinda Rajapaksa, said the rating upgrade confirms that Sri Lanka has won the confidence of the world on its economic development policies and macro economic strategies.
Sri Lanka recorded 8 per cent GDP growth in 2010 on the back of economic transformation with the integration of the north and east provinces back into the economy.
Since the end of the civil war on the island in mid-2009, the Government has been engaged in the promotion of livelihood and income generating activities among conflict-affected households and resettled internally displaced people.