"The bond was priced at 6.25 percent and attracted over $7.2 billion worth of subscriptions," the central bank's deputy governor Dharma Dheerasinghe told AFP by telephone from London.

He said investors from the US accounted for just over 40 percent of the subscription, followed by Europe with about 30 percent.

"There was strong demand. Investors are now familiar with Sri Lanka and the good economic fundamentals," he said. Sri Lanka's economy has strengthened since its decades-long civil war with Tamil Tiger rebels ended in 2009.

The island's $50-billion economy is tipped to grow at a record 8.5 percent this year, up from a 32-year high of 8.0 percent posted in 2010.

Ahead of the bond sale, international rating agencies raised Sri Lanka's credit rating due to its improving post-war economic situation.

This is Sri Lanka's fourth international bond offering since it first tapped foreign capital markets in 2007.

Officials said the bond proceeds will be used to settle expensive debt and raise cash for infrastructure investment, including post-war building in the island's north and east.

Copyright AFP (Agence France-Presse), 2011