Sri Lanka to issue $1.5bn of development bonds in 2017

COLOMBO: Sri Lanka's Cabinet has approved the issuance of $1.5 billion worth of development bonds in 2017 to strengthen the government's borrowing programme, an official said on Wednesday.

"The proposal made by Ravi Karunanayake, minister of finance, to issue Sri Lanka development bonds of 1,500 million dollars to strengthen the governments borrowing programme 2017 was approved by the cabinet of ministers," cabinet spokesman Gayantha Karunatileka told reporters.

Sri Lanka's economy is still recovering from a debt and balance-of-payments crisis last year, although an economic reform programme is in place as required by the International Monetary Fund when it extended a $1.5 billion, three-year loan.