Sri Lanka is raising 500 million dollars in international markets. The money is needed reduce pressure on domestic debt markets and shore up the exchange rate which has come under pressure in recent months.
JP Morgan Chase, Barclays and HSBC are managing the issue. "Even accounting for a planned international bond issue, concessional funds are expected to remain the primary source of foreign financing," S&P said after upgrading the negative outlook on Sri Lanka's 'B+' speculative rating to stable.
"Standard & Poor's expects Sri Lanka to be able to maintain adequate external liquidity, supported by limited recourse to short-term borrowing and strong remittance inflows."
S & P said public external debt was 45 percent of the economy o