Verité Research flags risk to potential $ 70 m debt relief

Friday, 7 November 2025 00:28 - - {{hitsCtrl.values.hits}}

Warns of fiscal planning oversight

Verité Research, in a post on social media, has warned that Sri Lanka risks losing $ 70 million in debt relief under its Governance-Linked Bond (GLB) because of a fiscal planning oversight.

The think tank explained that Sri Lanka would qualify for the relief only if it meets two specific revenue targets: 15.3% of GDP in 2026, and 15.4% the following year. However, the Government’s fiscal strategy projects revenue ratios slightly below the thresholds required to unlock the benefit at 15.2% of GDP in 2026 and 15.3% in 2027.

The Government’s projections are aligned with the IMF’s latest expectations but fall short of the GLB requirements.

Verité Research offered the solution: “Adjust the revenue targets in the Budget to match the GLB targets.”