Sri Lanka may sell sovereign bond in 2012

Sri Lanka may sell up to $ one billion in a 10-year sovereign bond in 2012, the year when the island's debut $ 500 million dollar bond matures, Central Bank Governor Ajith Nivard Cabraal said on Tuesday.

"We may sell a sovereign bond in 2012. We are looking longer tenure of at least 10 years and a size of between $ 500 million to $ one billion," he told Reuters, after a tour of the former northern war zone in Mannar.

The amount will be decided according to the requirement of that time.

"Our spreads are getting tighter now. So we can raise money at a cheaper rate than the debut bond. We can also manage the repayment of the debut bond in 2012 without much pressure," he said. Reuters