Sri Lanka News Updates with Discussions

mud-slinging at Tigers

mud-slinging at Tigers

Sri Lanka Gets Excess Demand for Its 1st Overseas Bond Offering

Oct. 17 (Bloomberg) -- Sri Lanka, fighting a worsening civil war, attracted $1.25 billion of orders for a $500 million bond offering, its first sale of debt overseas, according to an e-mail sent to investors.

The South Asian nation's government offered to pay a yield of 8.25 percent for the five-year bonds, according to the e-mail. That is higher than the return on debt sold by Pakistan, which faces conflict from Taliban and al-Qaeda fighters.

Sri Lanka is selling debt to build roads and ports to boost growth in the $26 billion economy, which is hampered by record inflation and the worst fighting in two and a half decades of conflict with Liberation Tigers of Tamil Eelam rebels who want a separate homeland in the north and northeast of the island.

Investors demanded a yield of 8.25 percent on Pakistan's 7.125 percent bonds maturing March 2016, according to data compiled by Bloomberg. Pakistan is rated as B+ by Standard & Poor's, four levels below investment grade, the same rating given to Sri Lanka.

Consumer prices in the capital Colombo rose 17.3 percent in August from a year ago, after increasing 17.6 percent in July, according to K. Sugumaran, statistical officer at the Department of Census & Statistics.

This summer, Jane's Intelligence Review said the Tamil Tigers raise up to $300 million a year through international credit card fraud, extortion and donations.

Mud slinging at Tigers