The Government has decided to raise US$ 300 million by way of a syndicated loan in any major reserve currency from international markets. According to the Central Bank of Sri Lanka, as envisaged in the budget and approved by the Parliament, the funds would be used for financing the ongoing infrastructure projects.
"With this additional borrowing, the government is of the view that there will not be any further need for foreign currency borrowings this year.
After taking the above foreign currency borrowing, as well as the other expected borrowings during the rest of the year, into consideration, the Debt/GDP ratio is estimated to be at the level of 78.5% at the end of the year 2008, as against the ratio of 85.8% at the end of the year 2007," stated Central Bank.