Apr 14, Colombo: Sri Lanka's economy grew at a rate of 7.2% over the past financial year, making the island one of Asia's fastest-growing markets after China, The Financial Times of London reported.
The successful issuance of a sovereign bond suggests that no extraneous factors deterred investors against a backdrop of heightened appetite for the emerging market and frontier debt, Murtaza Jafferjee, the Head of brokerage JB Securities in Colombo has noted.
The Sri Lankan government last week sold a US$ 500 million International Sovereign Bond issue at a yield of 5.125 percent per year, its lowest rate so far, and attracted US$ 4.25 billion within six hours after opening from 287 accounts with well-diversified investors.
In January, Sri Lanka's 5-year US$ 1 billion international sovereign bond issue with a 6% yield was oversubscribed 3.2 times within 18 hours at a time of growing worries over emerging and frontier markets as the US Federal Reserve rolls back its ultra-easy monetary stance.
Sri Lanka's Central Bank projects a US$ 4,825 GDP per capita income with a 8.3 percent economic growth in 2016 while keeping inflation around 4.0 percent.