Is this accessible to retail investors ? With which brokers/ banks ?
The 6 months rate implies a 4% interest rate differential between the two currencies.
I guess that differential would double for the 12 months rate.
This means that if I buy a USD denominated bond , for example the NDB bond just issued , and at the same time I sell a 1 year USD/LKR forward at 132 +8% = 142.50 , I should get a total return in LKR of 8.875% from the bond yield + 8% from the currency swap = 16.875% which is higher compared to domestic bonds by similar issues (e.g. HNB 14.25%)