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Extended Debt

Superintendent Public Debt, Dharma Dheerasinghe told journalists that the bank hopes to offer around Rs.
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5 bn at the initial issue.

rnrnThe issue is targeted at captive sources like pension, EPF, ETF and insurance funds.

rnrnThe 12-year issue will carry yearly interest rates, unlike the present half yearly rates. ldblquote Our discussions with the captive sources showed us that they prefer yearly rates, dblquote Dheerasinghe said.

rnrnThe move also helps Central Bank maneuver around the difficulty of issuing additional scripts. The present bond script only carries 12 scripts and market players speculated that the bank quote s decision could pave the way for zero coupon bonds to be introduced in Sri Lanka for the first time.

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rnrnThe 12-year issued will have the longest tenure after the six year bonds issued in late 2000.rn

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