Foreign debt share on the rise

Tuesday, 23 August 2022 02:35 - - {{hitsCtrl.values.hits}}

Sri Lanka ended 2021 with a total outstanding Government debt of 17,873 BN (105% of GDP). At the end of the first quarter of 2022, total outstanding Government debt increased to 21,697 billion.

Foreign debt as a percentage of total outstanding Government debt increased from 37% at the end of 2021 to 47% in the first quarter of 2022. On average for the past decade domestic debt has accounted for 56% and foreign debt has accounted for 44% of total outstanding Government debt.

The rupee value of the country’s foreign debt increased by 68% from February to April 2022, following the depreciation of the exchange rate in March 2022. This was the main contributing factor for the increase in total outstanding Government debt.