The latest report released by the Ministry of Finance reveals that the total unpaid debt and instalments amount to USD 8.6 billion over the past 24 months, following the government’s decision to temporarily suspend foreign debt payments.
According to the Ministry of Finance, since the temporary suspension of foreign debt and instalment payments on April 12, 2022, the total unpaid debt and instalments have reached USD 8.6 billion as of April 30 this year.
Breaking down the figures, from April 12, 2022, to April 30, 2024, the unpaid debt instalments total USD 6.02 billion, while the unpaid interest during this period amounts to USD 2.586 billion.
These details were disclosed in this year’s mid-year fiscal status report by the Ministry of Finance, Economic Stabilization, and National Policies. The report was recently submitted to Parliament by President Ranil Wickremesinghe, who also serves as the Minister of Finance.
Secretary to the Ministry of Finance, K.M. Mahinda Siriwardena, stated that the fiscal report was presented to Parliament under Section 10 of the Public Finance Management (Responsibility) Act No. 3 of 2003.
Siriwardena highlighted that providing updated information on the state’s financial operations is one of the objectives of presenting such a report, in line with the government’s state financial management strategy.
In addition to these measures, the government has actively pursued a debt restructuring process to manage the mounting debt situation. Currently, negotiations with international creditors are underway to secure more favourable terms, including extended repayment periods and reduced interest rates. This debt restructuring process is crucial for stabilizing the country’s financial status and ensuring long-term economic sustainability. The Ministry of Finance is working closely with international financial institutions and stakeholders to finalize a comprehensive debt restructuring plan. Recent discussions have shown positive progress, with several key agreements expected to be announced soon, aimed at alleviating immediate fiscal pressures and setting the stage for economic recovery.
