Yields of two short-term International Sovereign Bonds (ISB) of Sri Lanka which are to reach maturity next year, have increased drastically, reports say.
Yields of an USD 500 Mn ISB which will reach maturity in Jan. 2022 have gone up by nearly 40%.
In addition, an USD 1000 Mn ISB which will reach maturity in June 2022 have gone up by nearly 60%.
This is despite Sri Lanka receiving USD 800mn worth of IMF allocation to improve the reserves towards USD 4Bn.
Reports say that this could lead the country slipping towards massive fiscal imbalance.