Development of Government Bond Market with Special Reference to Developing A Yield curve: Experience of Sri Lanka

Abstract

Sri Lanka has given special emphasis to the development of a domestic government bond market under the market oriented economic policy regime introduced in 1977. This study attempts to examine the measures and actions taken and to evaluate the outcomes and existing issues related to domestic bond market development. The paper reveals that Sri Lanka has made a reasonable progress in developing a government bond market and a default-risk free benchmark yield curve but the country still has a long way to go in order to realize full benefits of a developed bond market. (JEL H63, N20)

DOI: 10.4038/ss.v35i1.1235

Staff Studies Volume 35 Numbers 1& 2 2005 p.93-106