Public Finance Data and Analysis
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Sri Lanka's government and private borrowers serviced $2.58 billion in debt in 2023, following $2.48 billion in 2022, the year the country defaulted on external debt, according to the Finance Ministry. In 2022, central government principal repayments dropped to $1.236 billion from $2.377 billion in 2021 after the default, with interest payments falling from $1.187 billion to $465 million. By 2023, the government made $1.043 billion in principal repayments and $405 million in interest payments. The ministry clarified that it is incorrect to claim that foreign debt is not being repaid.
In the private sector, banks and corporations repaid $769 million in principal in 2022, down from $1.410 billion in 2021, while interest payments dropped from $394 million to $273 million. In 2023, private entities paid $405 million in interest. The data excludes foreign reserve collections by both the central bank and private banks, which resemble debt repayments. The central bank repaid $522 million in 2023, including $172 million to the IMF and $350 million in swaps. Reduced imports of building materials and machinery were linked to domestic savings being used to repay debt instead of being invested locally.
