The Concessionality of Foreign Debt Over time

In 2007, the majority of Sri Lanka’s foreign loans were concessional.

However, this changed in 2018, with commercial loans becoming the major source of foreign debt in Sri Lanka.

Here is an animation of the composition of Sri Lanka’s foreign debt overtime.

Concessional Loans

Loans which have a higher grant element

Non-Concessional Loans

Loans which have a lower grant element

Commercial Loans

Loans at the market interest rate

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