CB to decide soon on dollar bond

The ICICI Bank is in discussions with another foreign bank aimed at forming a consortium for the $300 million loan for Sri Lanka, a bank source said.

“We are interested and we are in discussion with another bank to get together and for a consortium,” he said.

Citi Bank, HSBC, Standard Chartered, Deutsche Bank and ICICI Bank have submitted bids for the loan on the Central Bank’s invitation last month. The selections will be made next week, Ajith Nivard Cabraal, Governor, Central Bank told The Sunday Times FT. “We have a Monetary Board meeting next week and thereafter, we will finalise the bank out of the five banks which have submitted the proposals,” he added.

When asked if the US$ 300 million is to pay off government loans, he said the money will be used in a beneficial manner. “We explained this after the US$ 500 million bond as well. This depends on the way the people look at ‘spending money.

We will handle the cash in a beneficial manner to the country,” he stressed, adding that the US$ 300 million bond is primarily for infrastructure development. "The people need to comprehend the economics of this matter," he added.