Press briefing of Cabinet Decision taken on 2017-04-25

Enhancing the limit of issuance of Sri Lanka Development Bonds under the Implementation of the Government Borrowing Programme 2017

- According to the Appropriation Act, No.24 of 2016 the maximum borrowing limit for the year 2017 is Rs.1,529 billion. Out of which Rs.1,129 billion is planned to be raised from the domestic sources and the balance Rs.450 billion from the foreign sources. Approval has already been granted by the Cabinet to raise funds through international sovereign bonds amounting to US$ 1,500. Meanwhile, the approval of the Cabinet of Ministers has been granted on 2017-10-01 to raise US$ 1,500 to issue Sri Lanka Development Bonds under the domestic borrowings. Accordingly, the proposal made by Hon. Ravi Karunanayake, the Minister of Finance, taking into consideration the low liquidity situation in the domestic market and the upward trend on the interest rate of the Treasury Bills and Treasury Bonds to enhance the limit of issuance of the Sri Lanka Development Bonds from US$ 1,500 million to US$ 3,000 million, including the Bonds due to mature this year, was approved by the Cabinet.