Sri Lanka owes $3 billion a year in debt – President
President Ranil Wickremesinghe has said that Sri Lanka will still have to pay $3 billion a year after debt relief of $17 billion expected through debt restructuring.
In his policy statement issued yesterday (07) at the opening of the 5th session of the 9th Parliament of Sri Lanka, the change in the direction of the upcoming restructuring debt repayment despite the non-repayment of loans from foreign countries and foreign trade camps.
He further mentioned that by the end of September 2023, Sri Lanka’s total debt will be 91 billion dollars and it will take considerable time to settle this debt.
The President also mentioned that the annual payment to Sri Lanka could be reduced as a result of debt restructuring.
He mentioned that even in such a situation the country will have to pay about 3 billion dollars per year.
“We cannot keep paying like this. We have to strike a balance between our income and expenditure. President Wickremesinghe also mentioned.
The President also said that according to the International Monetary Fund (IMF) plan, Sri Lanka should expect to reduce debt by $17 billion from debt service between 2023-2027 to achieve debt sustainability.
Also, Sri Lanka’s budget deficit is at an acute stage, where Rs. 2,651 billion out of a total valuation of Rs. 6,978 billion for debt repayment by 2024 and an estimated government revenue of Rs. 4,127 billion, he said.
Rapidly increasing export earnings and foreign investments are important parts of this transformative journey, the President added.