Central Bank successfully settles $1 bn loan on behalf of the government

The Central Bank of Sri Lanka (CB) has successfully completed the settlement of the maturing International Sovereign Bond (ISB) of US$1 billion along with the due coupon payments, on behalf of the Government of Sri Lanka.
This settlement on October 2 confirms the “Government’s unwavering commitment to honour its foreign labilities, thereby bolstering investor confidence and dispelling any concerns foreign investors may have in relation to the Government’s ability and willingness to maintain its unblemished debt servicing record”, the CB said in a statement at the weekend. 
The domestic foreign exchange market has already reacted positively to this settlement and other recent positive developments in the Sri Lankan economy. With the envisaged inflows to the domestic foreign exchange market supported by proactive measures taken by the Government and the CB, the market sentiment is expected to further strengthen in the period ahead, it said. (BS)