For the first time since Sri Lanka declared bankruptcy in 2022, the government has announced the issuance of a USD 50 million Domestic Dollar Bond (DDB) aimed at raising foreign currency from local commercial banks.
The bond, available exclusively to locally incorporated licensed commercial banks, will be open for subscription from December 3 to 10. With a maturity period between one and three years, the interest rate will be determined through a competitive bidding process.
The Treasury stated that interest on the USD-denominated bond will be paid either every six months or annually, in accordance with local tax regulations. The instrument is expected to serve as a short-term liquidity tool while helping the government access much-needed foreign currency within the domestic banking system.
