Sri Lankan government on Thursday said it would borrow $1 billion via five-year syndicated loans as early as this week from international banks and it could borrow up to $2 billion.
“We feel, before the LIBOR goes up, we can do certain things and get the benefits,” Karunanayake told a Foreign Correspondents Association (FCA) forum in Colombo.
“We find unsolicited proposals coming in from banks like BNP, Credit Suisse, and Barclays roughly at 325-375 (basis points) and we believe that we could collect about $1 billion in the next couple of days …. It would even go up to $2 billion.”
Sri Lanka borrowed $988 million on May 28 via a 10-year sovereign bond and development bonds. The new government has to pay off heavy debts built up by the previous administration, mainly for infrastructure projects.