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Saturday October 1st, 2022

Sri Lanka to repay US$4.8bn in 2020, already part financed

ECONOMYNEXT – Sri Lanka’s external debt repayments are 4.8 billion US dollars for 2020, and payments for the first half of the year is already financed, Deputy Central Bank Governor Nandalal Weersinghe said.

The new administration has to come up with a short and medium term debt raising plan, but financing for the first part of the year can be made comfortably, he said.

“Certainly government will have to raise a certain amount of commercial financing,” Weerasinghe said.

About 1.5 billion US dollars comes in every year from project financing from multilateral lenders, he said.

Sri Lanka also had the options of going for a Samurai bond, syndicated loans or Sri Lanka Development Bonds.

There is a bullet repayment on a sovereign bond due in October.

Until then there was a “smooth flow” of external repayments, he said.

“Last year we have raised a sufficient amount of money for the first few months of next year, so that we are in a comfortable position to meet the debt service payments of the government, until the new parliament commences,” he said.

After elections the new parliament may start in May or June.

Until April 2020, there is a vote on account. (SB-Colombo/Dec30/2019)

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