June 20, 2024

I Lanka News

Sri Lankan News

country is required to resolve USD 12.5 Billion

Sri Lanka paying dolloars

COLOMBO (News 1st) Sri Lanka’s Central Bank Governor Ajith Nivard Cabraal stated that the country is required to resolve USD 12.5 Billion in debt through International Sovereign Bonds over the next seven years.

Talking to the American-based CNBC Governor Scott said the outstanding foreign debt in 2022 will be around USD 6.9 Billion.

“Out of the 6.9 Billion, most of the loans are Sri Lankan-based loans which we have already negotiated for rollover as well as certain multilateral debts which are also being funded with new receipts that are coming in,” He said.

“The only thing we consider to be a type of risk as well as a cause for concern is the sovereign bonds. We need for 1.5 Billion dollars back this year. In the past, we’ve previously paid 500 million Dollars, and there is another million to pay. In the present, the situation similar to this. We’re left with approximately 12.5 Billion dollars of debt due to ISBs which must be paid back in 7 years.” stated Cabraal.

The Governor also stated that Sri Lanka’s government Sri Lanka has already made arrangements to repay the next loan, and will fund it with other sources.

“Since it is difficult to go to the market at this stage we have found alternative sources of new financing which has assisted us to repay the debt of the ISBs,” the CEO said.

Cabraal explained the Sri Lanka is monetizing certain assets. This will allow the country be able to sustain a larger debt portfolio