Jason Wulterkens, a frontier markets commentator, reports that Sri Lanka’s government will start its first overseas bond sale. http://frontiermarkets.wordpress.com
The issue will be difficult to get off the ground. Fitch Ratings gave Sri Lanka a negative outlook due to its political situation way back in 2006. Obviously, things have changed. Yields on the government 7.6 percent local-currency bond due in August 2009 are 16.2 percent. Still, there is a price for everything... That said, the issue will be especially difficult in view of the credit crisis and the fact that fighting has escalated in recent months.