Sri Lanka to Issue First Dollar Bond since 2022 Debt Suspension
- CNL Reporter
- November 25, 2025
- Banking and Financial
- dollar, Sri Lanka
- 0 Comments
Sri Lanka will issue a US$50 million Domestic Dollar Bond (DDB) next week, marking the country’s first foreign-currency borrowing instrument since the 2022 suspension of external debt repayments. The issuance, managed by the newly established Public Debt Management Office (PDMO), aims to mobilise dollar liquidity within the domestic banking system rather than approach international capital markets.
The auction on 3 December will offer one-, two- and three-year maturities, with interest rates determined through competitive bidding. Subscriptions from licensed commercial banks will open on 1 December and close on 3 December, with settlement scheduled for 10 December. The minimum investment is set at US$1 million.
The move follows the discontinuation of Sri Lanka Development Bonds in 2023 and the exchange of US$791 million in SLDBs under the domestic debt optimisation programme. Authorities say the new DDB will support short-term foreign-currency management as Sri Lanka remains locked out of global capital markets until 2028.
