* Sri Lanka to issue development bonds to cover the costs of the first quarter of 2010
Tue, Mar 16, 2010, 08:24 pm SL Time, ColomboPage News Desk, Sri Lanka.

Mar 16, Colombo: Sri Lanka Treasury has planned to trade development bonds worth of US$ 100 million to finance the interim budget of the first quarter of 2010.

The government produced an interim budget for the first four months of 2010 leaving the responsibility of preparing a budget for the government that is expected to be formed following the general elections to be held on April 08.

A part of the development bonds matures in two years while the rest matures in three years. The Central Bank is to set the yield for the bonds on March 18.

The pre-election budget report released by Sri Lanka government recently pointed to the fact that the costs for the state debt repayment and services was over the total state income in 2009.

Within the last six years, the foreign debt have doubled and the increase of debt payment and services cost is 157%. Finance Ministry anticipates that the state will need US $ 1.539 billion for debt repayment and services in 2012.