Sri Lanka’s Central Government debt Topped the country’s GDP in 2020

Despite a slight decline in foreign debt, Sri Lanka’s outstanding central Government debt rose to 101 percent of Gross Domestic Product (GDP) at the end of 2020, from 86.8 percent of GDP at the end of 2019.

“Reflecting the expanded budget deficit and resultant large financing requirements as well as the contraction of GDP, the outstanding central government debt rose to 101.0 percent of GDP at end 2020, from 86.8 percent of GDP at end 2019,” Central Bank said in its annual report.

However, outstanding foreign debt fell to 40.4 percent of GDP at the end of the year from 41.3 percent in 2019.

The relative share of outstanding foreign debt to total central government debt also declined notably to 40 percent at-end 2020, from 47.6 percent at-end 2019.

“Amidst adverse speculation, the Government continued to maintain its impeccable debt service record. Despite the limited fiscal space, the Government continued to provide relief to the businesses and individuals facing severe hardships,” the CB said.
stemming from the pandemic, with financial support from the Central Bank and the banking
sector.