Thursday Sep 03, 2026
Thursday Sep 03, 2026
Thursday, 3 September 2026 00:26 - - {{hitsCtrl.values.hits}}
Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando
Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando yesterday rejected claims that Government debt had increased by over Rs. 190 billion, insisting official data instead showed a continued decline in the debt stock.
In a video statement released by the Finance Ministry, he criticised recent media reports which, citing Central Bank of Sri Lanka (CBSL) data, claimed a significant increase in Government debt, arguing that the reports neither clearly explained the basis of the calculation nor accurately reflected the official figures.
Dr. Fernando said the Government’s debt position should be assessed using the quarterly ‘Debt Bulletin,’ which provides a comprehensive breakdown of domestic and foreign borrowings, including debt contracted from individual countries, multilateral and bilateral lenders, and commercial sources.
According to him, the debt stock has declined when measured in dollar terms. “Total debt stood at $ 100.3 billion as at 31 December 2025, falling to $ 98.9 billion by March 2026 and further to $ 95.03 billion by end-June. This clearly shows that the debt has not increased significantly, but rather declined,” he stressed.
The Deputy Minister also highlighted Government debt towards how borrowed funds are deployed.
He argued that borrowing in itself should not be a concern provided debt sustainability is maintained and funds are channelled towards productive economic and development activities.
“What we should worry about is if those debts are being obtained for inefficient activities,” he said.
Dr. Fernando pointed to the improvement in Sri Lanka’s debt-to-GDP ratio as evidence of the Government’s fiscal management following the country’s economic crisis.
“The ratio had fallen to 95% at end-2025, compared with a target that had originally been expected to be reached only by 2032. By end-June 2026, the ratio had declined further to 88.8% of the GDP,” he said.
The Deputy Minister described the reduction as evidence of improved management of public finances and said there was no uncertainty regarding the Government’s ability to service its borrowings.
“There is no uncertainty in repaying these loans too,” he reiterated.
Dr. Fernando stressed that official, verified records should be consulted before claims are made about the direction of Government debt, particularly given that debt data can be presented in different currencies and on different measurement bases (https://www.ft.lk/front-page/Public-debt-tops-Rs-32-98-t-in-2Q-despite-fall-in-dollar-terms/44-796664).
