COLOMBO: Sri Lanka has wrapped up a syndicated loan of one billion dollars which will give more flexibility in managing domestic rates, Deputy Treasury Secretary S R Attygalle said. Bank of Baroda, Deutsche Bank, Indian Bank, Qatar National Bank, SBI, SMBC were mandated to arrange the loan, with 450 million dollar being committed by May 2017.
The balance 550 million dollars had now arrived in Sri Lanka, Attygalle said, giving more flexibility to manage the government’s borrowing program, he said. The three year amortizing loan was priced about 200 basis points above six month Libor, he said. Sri Lanka’s tax revenues were also up 20 percent from a year earlier up to July. Some weakness was seen in alcohol and tobacco taxes following steep tax increases.