Economics
Sri Lanka Selling Global Bonds Amid Widening Budget Deficit
- Sale may help boost currency from record low, analyst says
- IMF recommends budget measures to boost revenue, curb deficit
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Sri Lanka is selling global bonds for the second time this year as the government faces a wider budget deficit and a weaker currency.
The issuance is ranked B+ by Standard & Poor’s, its fourth-highest junk grade, and its size is yet to be decided, the ratings company said in a statement Tuesday. The sovereign is marketing 10-year notes and indicated it expects the securities to yield around 7 percent, according to a person familiar with the deal who isn’t authorized to speak publicly and asked not to be identified. The island nation sold $650 million of similar-maturity debt in May at a coupon of 6.125 percent.