Sri Lanka ISBs are under pressure once again

The yields of Sri Lankan ISBs are reflecting weaker investor sentiments as yields are volatile. Declining international reserves, widening fiscal and trade gaps have created unfavorable conditions for investors to hold a steady view on the CBSL's commitment of repayments of those bonds especially maturing on next year. CBSL has proposed a number of avenues that bring the expected foreign exchange to the country under the Road Map for the next Six months. Very illiquid SRILANs (ISBs) are used to produced volatile yield fluctuations.