US$ 58.54 M SLDBs sold
BY PANEETHA AMERESEKERE
Sri Lanka yesterday raised US$ 58.54 million by selling short-term Sri Lanka Development Bonds (SLDBs) at interest rates varying from a so-called ‘low’ 7.60 per cent to a high of 7.98 per cent.
The splits comprised the raising of US$ 48.01 million of nine months tenure at a fixed weighted average rate (FWAR) of 7.69 per cent, US$ 4.51 million of one year and eight months tenure at a FWAR of 7.67 per cent, US$ 1.06 million of two-year tenure at a FWAR of 7.98 per cent and US$ 4.96 million of a five-year tenure at a FWAR of 7.60 per cent, respectively. Generally, investors of SLDBs are local banks investing the money of NRFC and RFC account holders in such instruments.
Considering a FWAR of 7.69 per cent paid for a nine-month tenure of SLDBs at yesterday’s auction by proxy to NRFC and RFC account holders which generally also includes exporters, whereas pensioners and private sector retirees who generally invest in Treasury T-Bills are discriminated by getting a poor, fixed, maximum administered yield of a mere 5.21 per cent on their one-year (12 months) T-Bill holding investments.