The Central Bank on behalf of the Government will issue Sri Lanka Development Bonds (SLDBs) of US Dollars 60 million in 3 year tenors to eligible investors for subscription at a rate of US Dollar 6 month LIBOR plus a margin to be determined through competitive bidding.

The offer was opened from March 3 for bidding with the settlement on March 17. Foreign and local commercial banks operating in Sri Lanka subscribed at the auction. The offer was oversubscribed by 3.1 times with total bids received amounting to USD 187 million. Considering the high demand for SLDBs and providing an opportunity for investors to invest their funds for a longer period, it was decided to accept the entirety of US Dollars 187 million in 3 year maturities at the market determined rate of USD 6 month LIBOR plus a weighted average margin of 400 bps. The US Dollar 6 month LIBOR rate as of March 10, 2014 is quoted at 0.3318 percent.

The SLDB issue was executed in terms of Section 2 (a) and 2 (c) of the Foreign Loans Act No. 29 of 1957 as amended. The SLDBs are transferable by endorsement, delivery and registration with the Superintendent of Public Debt of the Central Bank of Sri Lanka. Eligible investors may purchase SLDBs in the secondary market through Designated Agents appointed by the Central Bank.

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