COLOMBO – Sri Lanka’s total public debt stood at US$97.95 billion (Rs 32.98 trillion) as of June 30, according to the latest report issued by the Public Debt Management Office (PDMO) of the Ministry of Finance.
The report said central government debt accounted for US$95.05 billion (Rs 32.00 trillion), while provincial councils and provincial institutions had outstanding debt of US$20 million. A further US$2.89 billion represented debt owed by state-owned enterprises backed by government guarantees.
Central government domestic debt stood at US$57.04 billion (Rs 19.20 trillion) at the end of June. This included US$47.73 billion (Rs 16.07 trillion) in outstanding Treasury bonds and US$7.05 billion (Rs 2.37 trillion) in Treasury bills.
Foreign debt stood at US$38.01 billion at the end of June, rising by US$540 million from US$37.47 billion recorded at the end of the first quarter of 2026.
The foreign debt comprised US$14.80 billion in multilateral debt, US$12.41 billion in commercial debt and US$10.80 billion in bilateral debt.
China remained Sri Lanka’s largest bilateral creditor, with outstanding debt of approximately US$5.01 billion, followed by Japan with US$2.27 billion and India with US$853.9 million.
Among multilateral creditors, Sri Lanka owed US$6.89 billion to the Asian Development Bank, US$4.67 billion to the World Bank and US$2.62 billion to the International Monetary Fund.
Sri Lanka’s external commercial debt stood at approximately US$12.41 billion, of which US$10.01 billion was held in International Sovereign Bonds (ISBs). A further US$2.40 billion in commercial debt was held under China-related Asian Development Bank term loan facilities.
The report noted that following the debt restructuring process completed in 2024, the new sovereign bonds issued by Sri Lanka have maturity dates ranging from 2028 to 2038.
The government made total debt-service payments of Rs 2.70 trillion during the second quarter of 2026, of which Rs 2.44 trillion was paid towards domestic debt, including interest, while Rs 257 billion was paid towards foreign debt.
In US dollar terms, foreign debt-service payments during the quarter amounted to US$804.3 million, comprising US$573.9 million in principal repayments and US$230.4 million in interest payments.
The PDMO said Sri Lanka had completed several major components of its debt restructuring program, including restructuring arrangements with the Official Creditor Committee, China Exim Bank, China Development Bank and holders of International Sovereign Bonds.
The ISB exchange was completed in December 2024, with a participation rate of approximately 98%, according to the report.
Sri Lanka has also progressed with bilateral debt restructuring arrangements involving Japan, India, France, Hungary, Saudi Arabia, the United Kingdom, Australia, Denmark, Belgium and Germany, with normal debt servicing to the respective creditors having resumed under the relevant agreements.
However, debt restructuring relating to obligations owed to 13 countries remains ongoing, indicating that Sri Lanka’s overall debt restructuring process has yet to be fully completed.
-ENCL
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