Loans will be serviced, repaid in 2019: Fin. Min.

we assure all lenders that all such dues will be met

Slamming media reports that the government is unable to repay loans next year, the Finance Ministry said loans would be serviced and repaid during the 2019 financial year.

Especially the repayment of the International Sovereign Bond (ISB) amounting to USD 1,500 million maturing during the year 2019

Issuing a statement, the ministry said, “The Government of Sri Lanka (GOSL) has raised loans in terms of the provisions of the specific laws including the Registered Stock and Securities Ordinance, No.7 of 1937, Local Treasury Bills Ordinance, No.8 of 1923 and the Foreign Loans Act, No.29 of 1957. As such, any dues on such loans that may arise, in accordance with the respective terms and conditions attributed to such borrowings, can validly be charged on the Consolidated Fund as provided for in the Constitution and such specific laws as noted.

“Therefore, the GOSL wishes to assure all lenders that all such dues will be met on the due dates as has been the time honoured tradition of the country where we have maintained an unblemished track record of debt payments.

“Further, we wish to note that this ministry has been closely collaborating with the Central Bank of Sri Lanka to ensure adequate buffers are created and maintained in view of the dues that will arise in 2019, especially the repayment of the International Sovereign Bond (ISB) amounting to USD 1,500 million maturing during the year 2019.”