Debt repayment commitments are being met: CB Governor

Upcoming debt repayments are being met with more non-debt inflows and contingency plans were in place to raise necessary funding from donor countries including the Chinese Renminbi swap, Central Bank Governor Prof. W D Lakshman said this week.

Addressing a news conference at the Central Bank, Prof Lakshman said that so far, on account of Sri Lanka Development Bonds (SLDBs) and foreign currency loans from domestic banks, debt service payments of close to US$ 1.2 billion had been met.

In May, a US$ 693 million SLDB raised mainly from local investors is expected to mature and another $1 billion sovereign bond will be maturing in July this year. Sri Lanka is also finalising a $700 million loan facility from the China Development Bank soon, he disclosed.

The comments came as the gross official reserves were estimated at US$ 4.1 billion (excluding the swap facility with the Peoples Bank of China) with an import cover of three months at the end of March.

Prof Lakshman noted that the Central Bank and the government would remain committed in honouring foreign currency debt service obligations on time.