CBSL had announced an auction of Sri Lanka Development Bonds (SLDB) for $ 220Mn. Previously issued SLDBs of $ 218 Mn are maturing on 1st April 2020. The auction was able to attract only $22.33 Mn out of which CBSL has accepted only $11.93Mn. This is the second time the SLDB auction undersubscribed this month. CBSL has offered $ 520 Mn SLDBs so far this year for rolling over of $ 568.2Mn maturities but able to raise only $ 200.76Mn. Doller denominated Sri Lankan financial instruments are under pressure of low liquidity and steep discount.
Sri Lanka SLDB auction unsubscribed second time in March
Interest RatesMar 30, 2020