The Central Bank of Sri Lanka said the bond issue of between $150 million to $250 million will carry a two-year maturity period.

"The government is looking at raising between $150 million to $250 million for reconstruction work," Central Bank Deputy Governor W.A. Wijewardene said.

He gave no details about the pricing or timing of the issue but officials said the issue could be launched within weeks.

Sri Lanka has estimated it needs about $1.5 billion to rebuild infrastructure damaged by the December 26 tsunamis which battered the island's shores and left nearly 31,000 people dead.

The government earlier announced that it had secured foreign aid for the huge reconstruction needs, but international lenders had warned that there could be huge gaps in pledges and actual foreign funding.

Sri Lanka received aid pledges of nearly two billion dollars after the tsunamis but so far only about $16 million has been paid directly into state coffers, the central bank said.