Sri Lanka is meeting global investors in New York, Boston and London

22nd July 2009 www.financial24.org

HONG KONG, July 21 - Sri Lanka is meeting global investors in New York, Boston and London this week to appraise them about the situation in the country after the end of its 25-year civil war, a source close to the development said.

Although a global bond issue is not imminent, the possibility of such a debt offering cannot be ruled out, the source said. Officials from the South Asian country met with investors in Hong Kong and Singapore last week. The meetings are being arranged by JPMorgan and HSBC.

On Monday, Sri Lanka and the International Monetary Fund reached a $2.5 billion loan deal to help the country cope with the global financial crisis and pay for post-war rebuilding.

'They are doing roadshows, they are meeting with investors, telling them the story post the end of the conflict and obviously the IMF is something very positive,' said the source, adding that no mandate had been issued and no terms were discussed for a possible bond sale.

Sri Lanka last tapped the global bond market in 2007, issuing $500 million of 5-year bonds at a yield of 8.25 percent. The bonds are currently offering a yield of about 10.75 percent, off a high of 25 percent struck last year.

Yields have fallen from 17 percent in a steady decline since the conflict with separatist rebels ended in May. Sri Lanka is rated B by Standard&Poor's, 5 notches below investment grade .
Fitch Ratings has a B-plus rating. Both agencies have a negative outlook on the rating.