3 Problems on Debt Numbers

A case study by VeriteResearch identified 3 main problems in debt reporting in SriLanka

đź”´Poor visibility on ownership of debt

đź”´Understating public debt

đź”´Displacement of debt

These infographics provide insight into each of these issues

SOE debt is not included when reporting on the debt obligations of SriLanka to China

Thus, debt owed by Sri Lanka to China is underestimated in the public reporting

Including SOE debt raises our debt obligations to China by 60%

Loans that were initially recorded by the central government have been transferred to several SOEs in SriLanka

These movements result in the central government stating debt at a lower value, even though the actual value of public debt is unchanged

The outstanding debt balance of the Hambantota Port Development project has been frequently transferred b/w the Treasury & @slpauthority

Recently the National Audit Office discovered that:

Neither SLPA nor the Treasury currently records the outstanding debt for this project

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