Government officials said the move was to capitalise on favourable market conditions.

It comes nearly six weeks after suicide bombers killed more than 250 people in attacks at churches and luxury hotels on Easter Sunday. That attack has badly dented the Sri Lankan economy, in particular deterring many thousands of foreign tourists from coming to the island.

"This is mainly to capitalise on the current market conditions which is favourable for us. The bonds we sold in March are now trading below or near the yields they were sold," a government official told Reuters.