Sri Lanka’s Government Debt Demystified

A Government’s public debt position includes both debt of the Central Government as well as debt owed by public corporations.

When broken down, debt owed by public corporations amounts to LKR 1.1 trillion or 7.5% of GDP and the Central Government debt amounts to LKR 13 trillion or 86.8 % of GDP.

As a result, the total public debt is outstanding at LKR 14.2 trillion or 94.3% of GDP.

In Sri Lanka, 31 per cent of the debt owed by public corporations is not guaranteed by the Central Government. This mainly consists of loans taken by SLPA for the Hambantota Port Development, CEB for the Puttalam Coal Power Plant and AASL for the Mattala International Airport.

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