Press briefing of Cabinet Decision taken on 2018-03-20

Alternative Sources of Financing - 2018

- As proposed by the Budget 2018, the maximum borrowing limit of the Government for the year 2018 is Rs.1,895 billion. It is estimated that within the first quarter of the year, around US$732 million will be required for foreign loan debt servicing and repayments. In the context of the existing global conditions and the difficulties that would emerge in future, in securing funds at a lower cost, it has been observed that it would be beneficial to pay and release the Sri Lanka Development Bonds which are to be matured in the year 2018, with a relatively higher cost by securing funds expeditiously, under the prevailing Fixed Interest Ratios. As such, the proposal made by Hon. Eran Wickramaratna, the Acting Minister of Finance and Mass Media, to secure funds for the purpose, up to a maximum of US$ 300 million, from the Bank of Ceylon and the People's Bank through their Foreign Exchange Banking Units or the Offshore Banking Units, was approved by the Cabinet.