Sri Lanka’s Central Bank issuing a statement today denied that it plans to delay debt service payments on account of Sri Lanka Development Bonds and Foreign Currency Loans from Domestic Banks as reported by a Sunday newspaper.
“The Central Bank observes, with disappointment, a certain newspaper today publishing an erroneous and unsubstantiated report of a planned delay in settlement of dues on account of Sri Lanka Development Bonds (SLDBs) and Foreign Currency Loans obtained by the Government from Domestic Banks,” it said.
The Central Bank informed the investors and the general public that debt service payments, interest and capital, are being met in a timely manner on account of SLDBs and Foreign Currency Loans from Domestic Banks, as well as all other debt obligations of the Government.
“There is no plan to delay or defer such payments as reported in the said newspaper, and accordingly, the newspaper report is completely erroneous with no basis for the contents reported,” the Bank asserted.
The Sunday Times report said as the Sri Lanka rupee hit the 200-mark in relation to the US Dollar this week for the first time, urgent measures to protect foreign reserves and stabilize the rupee will include delays in payments due on Sri Lanka Development Bonds (SLDBs) – a debt denominated in US dollars by the government, until next year and to differ the repayment of foreign currency loans taken by local private banks, the Treasury and the Central Bank have decided.
“The Government has no intention to tarnish its unblemished debt service record by delaying the settlement of maturing debt obligations. So far, during 2021, on account of SLDBs and Foreign Currency Loans from Domestic Banks, debt service payments of close to United States Dollars 1,200 million have been met, and all due obligations will also be serviced in a timely manner,” the Central Bank said in response to the Sunday Times report. Investors and the general public are advised not to get unduly concerned about such baseless and erroneous newspaper reports.
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