Saturday Jan 03, 2026
Saturday Jan 03, 2026
Saturday, 3 January 2026 00:44 - - {{hitsCtrl.values.hits}}
Sri Lanka’s total outstanding debt held by Provincial Councils and local Government authorities rose 24.62% in the six months to 30 September 2025, increasing by Rs. 1,268 million to Rs. 6,419 million from Rs. 5,151 million as at 31 March 2025, according to Finance Ministry tracking.
The sharp increase was driven overwhelmingly by the Western Province, where outstanding debt surged by Rs. 2,349 million, or 388.91%, rising to Rs. 2,953 million from Rs. 604 million over the period.
In contrast, several provinces recorded declines in outstanding liabilities.
The North Western Province reduced its debt by Rs. 620 million (down 19.13%) to Rs. 2,621 million, while the Uva Province recorded a Rs. 111 million reduction, translating to a 39.36% contraction. The Central Province also posted a notable decline of Rs. 113 million, or 36.10%, with outstanding debt falling to Rs. 200 million.
Among provinces that recorded increases, the Southern Province saw debt rise by Rs. 78 million (34.06%) to Rs. 307 million, while Sabaragamuwa Province posted a Rs. 34 million increase (11.72%) to Rs. 324 million. The North Central Province registered a marginal increase of Rs. 6 million, equivalent to 3.73%, bringing its total to Rs. 167 million.
The Eastern Province remained unchanged at Rs. 31 million, showing no percentage change, while the Northern Province, which had no outstanding debt as at end-March, recorded Rs. 3 million by end-September.
Overall, Finance Ministry data shows that while aggregate Local Government debt expanded during the period, the increase was highly concentrated, with the Western Province accounting for more than the net rise amid reductions across several other regions.
