As widely reported in the national media, the Central Bank of Sri Lanka (CB) recently raised US$1.5 billion on behalf of the government by issuing 10-year International Sovereign Bonds. According to the CB media release dated 28 October, the annual interst (coupon) rate on these bonds is 6.85 per cent.
As bonds were sold at par, the actual interest cost to the government as well as the potential return to the investors until the maturity of the bonds (yield-to-maturity) is 6.85 percent. At first, this bond issue can be considered a success.
The issue was oversubscribed by 2.2 times, with bids worth $3.3 billion from 290 investors from US, Europe and Asia. And the CB was able to sell the bonds at par (face value). As the CB has claimed, this outcome also seems to reflect the trust and the confidence international investors have in the creditworthiness of the country.
Ajith Gallage, the owner of a Bird Park in Nagarawawa, Hambantota, has been remanded over allegations of concealing illegally imported motorcycles, in a warehouse owned by him.
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