There’s no plan to delay or defer payments to domestic banks, says CB

The Central Bank of Sri Lanka (CBSL) yesterday issued a statement clarifying a news report on debt service payments on account of Sri Lanka Development Bonds and Foreign Currency loans from domestic banks.

“There is no planned delay in settlement of dues on account of Sri Lanka Development Bonds (SLDBs) and foreign currency loans obtained by the government from domestic banks,” it said.

The CBSL statement stared.

“The Central Bank observes, with disappointment, an erroneous and unsubstantiated report of a planned delay in settlement of dues on account of Sri Lanka Development Bonds (SLDBs) and foreign currency loans obtained by the government from domestic banks.”

“The Central Bank wishes to inform investors and the general public that debt service payments, interest and capital, are being met in a timely manner on account of SLDBs and foreign currency loans from Domestic Banks, as well as all other debt obligations of the government. There is no plan to delay or defer such payments as reported in a newspaper, and accordingly, the newspaper report is completely erroneous with no basis for the contents reported. The government has no intention to tarnish its unblemished debt service record by delaying the settlement of maturing debt obligations. So far, during 2021, on account of SLDBs and foreign currency loans from domestic banks, debt service payments of close to United States Dollars 1,200 million have been met, and all due obligations will also be serviced in a timely manner.”

“Investors and the general public are advised not to get unduly concerned about such baseless and erroneous newspaper reports,” the statement said.

-CBSL