Late Buyers To Profit As Sri Lanka Repays ISB 
Posted 27,July

By Chaveendra Dunuwille

In Local News

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The State Minister for Money and Capital Markets, Nivard Cabral stated that Sri Lanka will soon transfer funds to repay an International Sovereign Bond (ISB) of $1 billion and late buyers are expected to profit from the payment. 

SL bonds were sold at a significant discount of 20-30% and local banks were among the institutes who capitalized on the offer by purchasing bonds. In 2020 Sri Lanka downgraded to CCC after tax cuts and liquidity injections triggered a balance of payment deficit. 

While the Central Bank initially banned the purchase of bonds they revoked this decision in June. The CB outstanding ISB was $14.05 billion by the end of December, 2020 and $2.230 billion was held by domestic investors. 

As of June 2021 Sri Lanka holds $4 billion in gross foreign assets and a further $1.5 billion in unused assets resulting from the Renminbi swap from China.