🇱🇰 SL Issues First Post-Default Domestic Dollar Bond (DDB) 📈

• Sri Lanka will issue a US$ 50 Mn Domestic Dollar Bond (DDB) on 3 December, marking the country’s first foreign-currency instrument since the 2022 default. • The issue is the first to be handled by the newly operational Public Debt Management Office (PDMO), which now centralises all public debt functions. • The auction offers one-year, two-year, and three-year maturities, with rates determined through competitive bidding. • Subscriptions are limited to locally incorporated licenced commercial banks, starting 1 December. • The DDB is designed to mobilise dollars already within the domestic banking system, as the country is locked out of international capital markets. • The PDMO is central to IMF program compliance and efforts to restore market access. • Context: Previous SLDBs were suspended after holders exchanged US$ 791.4 Mn for Rupee Bonds under the 2023 Domestic Debt Optimisation (DDO).