The secondary market yield rates of Sri Lanka’s International Sovereign Bonds (ISBs) came down significantly last week, after the conclusion of the seven-week-long political crisis. The yield rates of ISBs which were hovering around their original rates of primary issuance (coupon rates) rose significantly during the crisis compared to pre-crisis levels. Sri Lanka currently has 12 ISBs worth $ 12.15 billion which reach maturity between 2019 and 2028. In January, 2014, the Government issued a $ 1 billion-worth ISB with a five-year maturity at a yield of 6% annum, which was a lower yield than the previous five-year issuances. Subsequently, the remainder of $ 500 million was raised in April, 2014 at a yield of 5.125% per annum. According to Central Bank of Sri Lanka (CBSL) data, the yield rate of the January, 2014 bond was 5.62% as at 26 October, just before the political crisis unfolded. However, it peaked at 10.9% during the crisis, but has come down to 7.63% during the week ending 21 December. The ISB that matures in April, 2019 was at 5.51% by the end of October and went up to 9.04% in the first week of November. It has now come down to 6.34%. In October, 2010, Sri Lanka issued a 10-year ISB of $ 1 billion with a coupon rate of 6.25%, to repay some high cost domestic borrowings. This was the third ISB issuance since Sri Lanka started issuing ISBs in 2007. This rose to 8.63% during past seven weeks from its yield rate of 6.49% recorded at the end of October. However, last week it fell to 7.42%. In July, 2011, the Government issued an ISB amounting to $ 1 billion. The issue had a maturity of 10 years at a fixed rate yield of 6.25%. According to the CBSL’s annual reports the funds were utilised to restructure the Government’s outstanding debt stock with the retirement of some high cost debt, and helped reduce pressure on domestic resources and interest rates. This ISB was closer to its coupon rate as it marked a yield of 6.88% at the end of October. However, it shot up to 8.49% during this period before dropping to 7.33% last week. Sri Lanka successfully issued its fifth ISB of $ 1 billion in July, 2012, with a comparatively lower yield of 5.875% per annum and a maturity of 10 years. Most of this inflow was directed to the continuation of major infrastructure projects which commenced in 2010 and 2011. This bond reaches its maturity in July, 2022 and was at a yield rate of 7.07% before the crisis, and peaked at 8.64% during the period of uncertainty. It also came down to 7.54% last week. In 2013, Sri Lanka did not issue any ISBs. The Government raised $ 2.15 billion through the issuance of ISBs during 2015. In May, 2015, the Government successfully issued ISBs to the value of $ 650 million with a maturity period of 10 years at a progressively lower yield rate of 6.125% per annum. This bond reached 8.98% during the crisis period from its 7.77% yield rate for the week ending 26 October, and came down to 7.83%. In addition, in October, 2015, ISBs to the value of $ 1.5 billion were issued at a yield rate of 6.85 % per annum with a maturity period of 10 years. This was Sri Lanka’s largest offering within a year in the international bond market since the first ISB was issued in 2007. The ISB, which reaches maturity in November, 2025, dropped to 7.83% from its peak rate of 8.99% during the crisis weeks. It was at 7.81% as at 26 October. The Government successfully issued its 10th International Sovereign Bond in 2016, reflecting improved investor sentiment on Sri Lanka. Accordingly, the Government was able to raise $ 1.5 billion in July, 2016 through the first dual tranche offering of 5.5-year ($ 500 million) and 10-year ($ 1.0 billion) bonds at yield rates of 5.750% and 6.825%, respectively, amidst high volatility in the global markets. The 5.5-year ISB was at a yield rate of 7.05%. It hiked up to 8.68% during the upheaval period and dropped to 7.43% last week. The 10-year ISB which reaches maturity in July, 2026 was at 7.93%, and jumped to 9.01% during the same period, and has now fallen to 7.87%. The Government was able to raise $ 1.5 billion in May, 2017 with a 10-year maturity at a yield of 6.20% per annum. Yield rates of this ISB were at 8.04% during the last week of October and rose to 9.03% during the past seven weeks, and came down to 7.86% last week. In April, 2018, the CBSL issued $ 1.25 billion 5-year and $ 1.25 billion 10-year ISBs with maturity dates in April, 2023 and April, 2028, with 5.75% and 6.75% yield rates, respectively. This is the largest bond offering raised by Sri Lanka, surpassing the $ 2.15 billion raised in 2015.