Press briefing of Cabinet Decision taken on 2018-01-02

Issuance of Sri Lanka Development Bonds under the Government Borrowing Programme of 2018

- In terms of the Appropriation Act, No.30 of 2017, the estimated maximum borrowing limit is a sum amounting to Rs.1,893 billion for the year 2018. Out of this sum, it is anticipated to utilize Rs.1,150 billion for re-payment of loans and Rs.743 billion for development projects and other related expenditure. Of this sum of loans, amounting to Rs.1,893 billion, it is expected to raise Rs.1,313 billion from domestic sources and Rs.580 billion from foreign sources. The loans proposed to be obtained from domestic sources will consist of the issuance of Treasury Bonds and Sri Lanka Development Bonds (SLDB). Accordingly, during the year 2018, it has been planned to raise funds up to a sum of US$ 3,000 million (approximately Rs.456 billion) through the issuance of SLDBs. As such, the proposal made by Hon. Mangala Samaraweera, the Minister of Finance and Mass Media, to make the issuance of the said bonds under the supervision of the Central Bank of Sri Lanka, was approved by the Cabinet.