There is a USD 1Bn International Sovereign Bond is maturing on 4th October 2020. The yields went skyrocket in April - May as COVID19 blocked country's foreign currency earnings and increase the risk of default on ISBs which are maturing in the near future. Every year Sri Lanka has to repay maturities of ISBs a minimum of USD 1Bn starting from 2020. The government has given a clear signal to investors that the country will not default ISBs at any cost. That has brought the yields down and prices are up.
Sri Lanka International Sovereign Bond starts gaining as investor confidence building
Interest RatesAug 16, 2020