Friday, 09 April 2021 09:51

Sri Lanka eyes Middle East funding as financial aid Featured

Sri Lanka explores the possibility of gaining some funding from the Middle East following discussions with relevant authorities in a latest mission to the Gulf region, Central Bank Governor Professor W D Lakshman divulged.

Some positive result relating to financial assistance could be expected within the next few weeks during the present visit to the Middle Eastern region to tackle the balance of payment issue, he told a media conference in Colombo on Thursday 8.
So far, during 2021, on account of SLDBs and foreign currency loans from domestic banks, debt service payments of close to US $1.2 billion have been met.

He added that upcoming debt repayments are being met with more non-debt inflows and contingency plans were in place to raise necessary funding from donor countries including the Chinese Renminbi swap.

In May a 693 million dollar Sri Lanka Development Bond of $693 million raise mainly from local investors is expected to mature in May and another $1 billion sovereign bond will be maturing in July this year.

Sri Lanka is also finalising a $ 700 million loan facility from the China Development Bank soon, he disclosed.

Prime Minister Mahinda Rajapaksa held discussions with Bangladesh authorities in a desperate effort to meet unprecedented foreign debt obligations.

Sri Lanka and Bangladesh have signed 6 memoranda of understanding after Bangladeshi Prime Minister Sheikh Hasina and her Sri Lankan counterpart Mahinda Rajapaksa had one-on-one talks in Dhaka recently.

Both countries agreed that there was a need for them to look for markets within the region without having to look outside South Asia.

Sri Lankan monetary authorities have met Bangladesh’s delegation headed by the country’s central bank Governor.

Central Bank officials held discussions with Bangladesh Central Bank Governor as part of a delegation that accompanied Prime Minister Mahinda Rajapaksa during his visit to that country, he said.

 

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