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Cabinet nod to establish offshore Sri Lankan Rupee Bond programme

Cabinet this week granted approval to establish an offshore Sri Lankan Rupee Bond programme to allow the government to issue bonds directly into the international market.

The above programme which was proposed by the International Finance Corporation (IFC) has been recommended by the Cabinet Committee on Economic Management.

Finance and Mass Media Minister Mangala Samaraweera who presented the paper to Cabinet sought its approval subject to approval from relevant institutions including the Central Bank.

The Minister had pointed out that this programme would help signal trust in the Sri Lankan economy, in time allow new investments in dollars to flood into the country and create an alternate funding source for the government.

At present foreign investors are only allowed to purchase government sovereign bonds through a local primary dealer.