The Central Bank has converted millions of Dollar denominated loans from state banks into bonds, Head of the Public Debt Office at the Central Bank, C.P.J. Siriwardane said.

While this move will improve the transparency of government debt, it will also make it more marketable, LBO reported yesterday.

In 2008, Sri Lanka converted US$ 593.07 million obtained from the FCBU of the Bank of Ceylon into two and five year bonds.

The conversion of the loan has been into two segments namely US$ 195 million into two year bonds and US$ 398.07 million into five year bonds, effective July 15.

These bonds can now be offered to any investor and would also facilitate state banks reducing their exposure, if they so desire.