Sri Lanka pays back $ 1bn Sovereign Bond on time despite political crisis
Sri Lanka maintaining his track record of debt payments paid back a US$ 1 billion International Sovereign Bond borrowed during the previous government yesterday (January 14).
In a statement Finance Minister Mangala Samaraweera said despite the disruptions of the 51-day coup, the government maintained its unblemished record of debt repayment and repaid the 2014 International Sovereign Bond amounting to US$ 1 Billion on time.
He added that the government hopes to build up its external reserves through swaps, term loans from other countries, international sovereign bonds and credit lines.
In January 2014 Mahinda Rajapaksa government borrowed USD 1 billion at 6.00% interest rate via an International Sovereign Bond.
Non-cabinet Minister Dr. Harsha de Silva said such International Sovereign Bonds have to be fully paid back in one installment and the government has to pay more such debt.
“In January 2014 Sri Lanka MR government borrowed USD 1,000 million at 6.00% interest rate via an International Sovereign Bond. Today we paid it back. Unlike what we are used to, these ISBs have to be paid back in one go. We have a lot more such debt to be repaid,” the Minister said on his Twitter handle.
The Sri Lankan government is struggling to repay its foreign loans, with a record $5.9 billion due this year including $2.6 billion in the first three months alone while the country lost $1 billion in foreign reserves during the 51-day political crisis precipitated by President Maithripala Sirisena in last October.