Sri Lanka to issue US$50mn dollar bonds to local market

Sep 10, 2009 (LBO) - Sri Lanka is selling 3-year bonds for 50 million US dollars in the local market to qualified investors who can hold dollar assets, the government's debt office said.

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The bonds will pay interest based on the 6-month London interbank rate (LIBOR).

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A 35 million US dollars in bonds are maturing this month.

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The government is also in the process of choosing lead managers for a 500 million bond sovereign bond.

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The dollar denominated 'Sri Lanka Development Bonds' are attractive to local investors as they are tax fee, dealers say.

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