Sri Lanka’s bond makes a peacetime benchmark
Sovereign tests appetite for a $500mln bond; Government confident of strong growth
A man counts Sri Lankan rupees in a money exchange in Colombo. On September 29 Sri Lanka’s central bank said it was allowing foreigners to buy into government securities again, a day after the rupee currency appreciated suddenly
Sri Lanka is back in the debt markets with a new story to tell. This year its 25-year civil war came to an end and the mood in Colombo is enthusiastic as the country looks forward to economic growth unfettered by violence, a divided country, impeded supply (the war-hit regions of the north and east contribute much of the country’s agricultural products and fish) and high military spending. The bond, which will be lead managed by JPMorgan, HSBC and RBS alongside local house Bank of Ceylon as a co-manager, aims to create a new, peacetime benchmark for the country, and to improve the cost of its funding.