The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of June 24, 1998 were as follows:

The approximate middle exchange rates of following currencies calculated on the basis of cross rates quoted by Gulf International Bank, Bahrain as it appeared in Reuters Financial Information System on June 24, 1998 were as follows:

Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers at mid-day on June 24, 1998 were as follows:

Average Weighted Prime Lending Rate (AWRP) and Lowest Prime Rate (LPR)
The Average Weighted Prime Lending Rate (AWPR) during the week ended June 19th 1998 was 14.2 per cent for all banks. The Lowest Prime Rate (LPR) among banks during this week was 12.5 per cent.

Average Weighted Deposit Rate of Commercial Banks (AWDR)
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended May 31st 1998 was 9.6 percent.

* After deducting exit fees applicable for the first year.

HNB Debentures: Rs. 1000 m. fully subscribed

By mid-day yesterday Hatton National Bank subordinated redeemable debenture issue of Rs. 1,000 million had been fully subscribed.

The chairman of the Bank Mr. Chrisantha Cooray says, it shows the extent of the credibility of the Bank.

The HNB debenture issue is the first of its size in the history of banking in Sri Lanka to be issued through a public offering.

Mr. Rienzie J. Wijetilleke, CEO of the bank says that its branch network had been highly active in this regard.

He said: "This shows that there is a ready market in the country for long-term debt." This is said to be a precedent for blue chip companies to go into this kind of debt instruments for any big projects.

Mr. Wijetilleke said this money would be utilised for housing project loans. It showed there were people looking for investment that gave them higher yields. Central Bank had collected Rs. 50 billion at a mere 12%. But the bank offered 2% more since there was a risk attached unlike the Treasury Bills.

Brokers say there was confidence among investors in the HNB. However they said that this investment was for a certain kind of people who did not wish to compete in the Stock Market.

Some brokers said that they have received some applications for this issue and would be sending them before 4.30 p.m. yesterday.

Meanwhile, Mr. Wijetilleke in a press statement says:

"The over subscription of the HNB Debenture issue on the very day it was opened to the public is a historic achievement for our Bank. To have raised Rs. 1,000 Mn on long-term debt from the market instantly reveals the great potential available for such instruments. It is also a clear indication of the confidence people have in our institution. They have used this issue as an alternative investment opportunity at a time when other avenues for investment with a reasonable return is limited. It is my firm hope that other corporate bodies will take this as an example and promote long-term debt instruments in this country which will in turn help the economy particularly for financing of infrastructure activities."