Sri Lanka to sell billion-dollar bond in Sept

Colombo, Aug. 4 (AFP): Sri Lanka today said it would issue a billion-dollar sovereign bond in September to help rebuild infrastructure after the end of a nearly four-decade civil war with Tamil separatists last year.

The move comes just over a year after the government was forced to go to the International Monetary Fund (IMF) for a bailout after its reserves almost evaporated as Colombo sought to put an end to the conflict.

“We feel there is appetite out there for our long-term securities, especially as the economy is recovering nicely after the war,” the Central Bank of Sri Lanka Governor Nivard Cabraal told AFP.

The island’s USD 40 billion economy is tipped to grow seven per cent this year, up from 3.5 per cent in 2009, after government troops ended the conflict with Tamil Tiger guerrillas last May.