ECONOMYNEXT – Sri Lanka is now confident of managing debt repayments if targets for narrowing budget deficits are kept on track, with a new debt management law also helping, Central Bank Governor Indrajit Coomaraswamy said.
"We are confident that provided country is maintaining fiscal consolidation we will be able to manage our rather onerous debt burden," Governor Coomaraswamy said.
He said the passing of a new active liability management law, has given the Treasury considerable ‘headroom’ to managed debt.
China has given Sri Lanka billion dollar loan for eight years at below market rates to help meet immediate debt obligations with many Chinese loans also falling due as grace periods ended. (Colombo/Aug29/2018)