Bonds Planned to Fund Cyclone Reconstruction

Sri Lanka is exploring the use of infrastructure bonds to finance large-scale reconstruction following Cyclone Ditwah, as fiscal constraints limit the Government’s ability to fund rebuilding directly. The Securities and Exchange Commission says discussions are underway with the Finance Ministry to mobilise long-term capital through the bond market.

Restoring damaged railway infrastructure alone is expected to cost around Rs. 200 billion, highlighting the scale of funding required. Regulators believe infrastructure bonds could attract institutional investors while spreading costs over time.

At the same time, officials acknowledge challenges, including low public participation in capital markets and investor confidence issues. Authorities stress that strong governance, transparency and investor awareness will be critical if market-based financing is to support post-disaster recovery effectively.

 

Spread the love
Tags:

Leave A Comment