Sri Lanka eyes West Asia funding as financial aid

Sri Lanka is exploring the possibility of securing funding from West Asia following discussions with relevant authorities in a latest mission to the Gulf region, Central Bank Governor Prof. W D Lakshman divulged.

Some positive result relating to financial assistance could be expected within the next few weeks during this visit to that region to tackle the balance of payment issue, he told reporters.

So far, during 2021, on account of SLDBs and foreign currency loans from domestic banks, debt service payments of close to US $1.2 billion have been met.

He added that upcoming debt repayments are being met with more nondebt inflows and contingency plans were in place to raise necessary funding from donor countries including the Chinese Renminbi swap.

In May, a $693 million Sri Lanka Development Bond 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.

Recently Prime Minister Mahinda Rajapaksa held discussions with Bangladesh authorities in a desperate effort to meet unprecedented foreign debt obligations.