The Trends in the Recent Years in the Sri Lankan Bond Market: A Critical Analysis

Abstract

This paper examines the recent trends in the Sri Lankan bond market and critically analyses that there has not been a diversity of investors to finance the budget deficit. Diversifying the credit market and to distribute credit risks among various investors arguably helps to develop the domestic bond market. According to the available statistics the non-bank borrowings as a share of total domestic borrowings declined to 24% in 2013 from 35% in 2012. So this can be identified as a negative trend in the Sri Lankan Bond market. Within a course of ten years from the year 2004 to 2013 the trends in the Sri Lankan Bond market is examined and critically analysed in this paper.