Sri Lanka’s government external debt reached USD 37.5 billion by the end of June 2024, according to the Mid-Year Fiscal Position Report from the Finance Ministry. The report highlights a growing debt burden, which includes suspended repayments and interest under the government’s debt standstill policy, implemented as a temporary measure in April 2022.
Key Highlights:
- Debt Servicing in 2024: Total debt servicing payments made between January and June 2024 amounted to USD 503 million. This includes USD 275.1 million toward principal repayments and USD 227.9 million for interest payments.
- Debt Standstill and Accumulation: Under the debt standstill policy for bilateral and commercial loans, Sri Lanka has suspended payments on affected loans from April 2022 onward. Consequently, unpaid debt service as of June 2024 has accumulated to a principal amount of USD 5.67 billion and an additional USD 2.53 billion in interest, according to the report.
This ongoing accumulation underlines the challenging path toward sustainable debt management as Sri Lanka navigates economic recovery and restructures its financial commitments to reduce the debt load while maintaining essential payments.
Updates from: Finance Ministry
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Last modified: November 2, 2024
