LONDON - Sri Lanka's dollar bonds surged on Tuesday, with the July 2021 issue reaching a seven-week high after the finance minister vowed to cut the nation's fiscal deficit by more than half.
Shorter-dated bonds rallied the most, with the July 2021 issue adding 7 cents to 90 cents in the dollar and the January 2022 issue rising 4.5 cents to 78.5 cents, Tradeweb data showed.
The gains followed finance minister Mahinda Rajapaksa presenting the annual budget and pledging to cut the fiscal deficit to 4% over the medium-term, from 9% currently.
(Reporting by Tom Arnold, editing by Karin Strohecker) ((Tom.Arnold@thomsonreuters.com; +442075428510; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
