Bonding with Bonds View(s):It was all about bonds — rhetoric or bonding–with-bonds talk in Parliament this week, with speakers from both the Government and the opposition lambasting the Central Bank for selling international bonds at high interest rates. “I say….…why are we raising sovereign bonds at such high interest rates?” asked Seeni Bola. Last week, Sri Lanka’s 13th international bond offering since 2007 of US$1 billion 5-year bonds and $1.4 billion of 10-year bonds was issued at 7.20 per cent and 8.20 per cent, respectively. Interest rates indeed have been rising for the issuance of international bonds, according to figures provided by the Central Bank. While political turmoil impacts on foreign investor sentiment, which in turn triggers high interest rates, it appears that interest rates now and during the war years were almost at similar levels.

Source: Sunday Times March 16, 2019 18:22 UTC