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Sri Lanka to buy back debt

June 25, 2009 (LBO) - Sri Lanka's public debt office has announced a 'reverse auction' to retire a part of the bonds maturing in August, which would help reduce bunching up of maturities, dealers said.


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The banking system is also flushed with liquidly from central bank dollar purchases.

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The government is offering to buy back 7.
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6 percent coupon bonds due to mature on August 01, 2009 on June 29, a month earlier.

Sri Lanka's bond yields have fallen from around 19.00 percent to 13.00 percent after the monetary authority cut rates.

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