The Central Bank of Sri Lanka (CBSL) announced that the $150-million Development Bonds (SLDBs) it floated to eligible foreign and local commercial banks has been oversubscribed 1.3 times.

The total bids received have amounted to $195.5 million and the government had accepted $190 million of two-year SLDBs.

The offer was opened on August 6 with the settlement on August 18. This SLDB issue is within the annual borrowing limit approved by Parliament for 2009 and the funds mobilized through the new bond issuance are to be used to settle maturing SLDBs of $175 million.

On July 25, the IMF approved a 20-month stand-by arrangement worth $2.5 billion Special Drawing Rights for Sri Lanka.

The key objectives of Colombo economic reforms programme supported by the Fund were strengthening the fiscal position while ensuring availability of resources for much-needed post-conflict reconstruction and relief efforts.

The programme is also intended to rebuild international reserves, strengthen domestic financial system and protect the most vulnerable.

Of the $2.5 billion approved, $322.2 million will be immediately available to Sri Lanka. The balance will be available in phases, subject to quarterly reviews.