Scarcity of funds: Bond market likely to collapse, says Bandula
Posted on April 24th, 2018

Sheain Fernandopulle Courtesy The Daily Mirror

While claiming that the Central Bank of Sri Lanka lacked sufficient funds to pay back the Treasury bonds and bills before their date of expiry, MP Bandula Gunawardana said the bond market could collapse due to the prevailing situation.

Addressing a news briefing, he said the government needs to pay back the funds of the Treasury bonds and bills before the date of termination and that they were short of funds to do so.

It is with responsibility that I say the Central Bank doesn’t possess sufficient funds to pay back the Treasury bonds and bills before the deadline expires. It has already suspended the release of funds for this purpose,” MP Gunawardana charged.

He said if this situation continues there would be an enormous impact on the Sri Lankan bond market and it would tarnish the monetary credibility among the international community and those who wish to invest in Sri Lanka.

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