US$ 500 m bonds: Three global banks shortlisted

Manjula Fernando and Nadira Gunatilake

COLOMBO: The Government has shortlisted three international banks to obtain the US $ 500 million commercial loan for the earmarked 22 infrastructure development projects.

Highways Minister Jeyaraj Fernandopulle said the three Banks; HSBC, Barclays and JP Morgan, have expressed their desire to go ahead with the transaction despite the malicious campaign by the main opposition.

Addressing reporters at the weekly situation briefing at the Information Department yesterday, the Minister said: “One of the three Banks have informed us that they are not concerned about the public remarks made by the Opposition Leader.” “I’m sure the other two share the same opinion,” he said.

Fernandopulle said the global economic ratings indicate a favourable improvement in the country’s economic front despite the escalation in conflict and the lenders go by these readings and not Opposition rhetoric.

“Financial obligations between private institutions and Governments cannot be written off according to the whims and fancies of individual parties,” he explained adding if that was the case, they would have written off the loans obtained during previous UNP regimes.

“Furthermore, this loan is payable within a period of 10 years. We have the mandate to govern for over 10 years.”

“Ranil has to wait a long time if at all he is going to be the next ruler,” he said.