Sri Lanka Bonds Win Fans After Becoming Worst Performer in Asia

Sri Lanka’s dollar bonds have been the worst-performing sovereign notes in Asia this year, Bloomberg News reported. But BNP Paribas Asset Management and Union Investment Privatfonds GmbH say it might now be time to buy. The comments come after Treasury Secretary S.R. Attygalle told Bloomberg News on March 31 that the country has “several streams of inflows in the pipeline to repay debt falling due this year.” That helped push back against uncertainty amid the Covid-19 pandemic, which had left the debt-laden nation looking particularly vulnerable. There have been other potentially positive developments. The nation is in talks with the International Monetary Fund and the Asian Development Bank for funds. It also expects about $800 million from China and a $400 million swap line from India to bolster reserves. “We are positive on the credit, and the willingness to pay remains strong,” said Jean-Charles Sambor, head of emerging-markets fixed income at BNP Paribas Asset Management in London. Read more

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