• Tuesday, Jan 25, 2022
  • Last Update : 03:02 am

Sri Lanka holds sovereign bond issues after downgrade

  • Published at 07:16 pm November 22nd, 2018
SRI LANKA-POLITICS
Members of a civil society activist group attend a silent protest to demand for democracy in the country, after Sri Lankan opposition leader Mahinda Rajapaksa was appointed prime minister when President Maithripala Sirisena dismissed Ranil Wickremesinghe, in Colombo, Sri Lanka November 21, 2018 Reuters

Sirisena dissolved parliament and called snap elections on January 5 but the legislature, restored by court order, voted twice to topple Rajapakse

Sri Lanka has abandoned plans to raise money through sovereign bonds and will pursue badly-needed revenue elsewhere after Moody's downgraded its credit rating amid political turmoil, an official said Thursday.

President Maithripala Sirisena's economic advisor said "alternative finance" raised locally would service much of Sri Lanka's $4.5 billion in foreign debt repayments in 2019.

Lalith Samarakoon said the credit downgrade by Moody's on Tuesday would result in higher borrowing costs for Sri Lanka in the international markets.

He said Sri Lanka would seek to extend a $1 billion loan from China by an additional $500 million, but would only turn to international markets for cash "as a last resort."

"We have arranged certain other financing options such as raising $1 billion through state banks," he said.

Moody's said its decision was "exacerbated most recently by a political crisis which seems likely to have a lasting impact on policy even if ostensibly resolved quickly."

The South Asian nation has been gripped by an unprecedented political crisis since Sirisena sacked his prime minister on October 26 and appointed former strongman Mahinda Rajapakse in his place.

Sirisena dissolved parliament and called snap elections on January 5 but the legislature, restored by court order, voted twice to topple Rajapakse.

He has refused to step down, leaving Sri Lanka without a government since November 15.

The unrest also prompted the International Monetary Fund to suspend a tranche of a $1.5-billion bailout loan agreed to in 2016.

50
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail