Sri Lanka: Debt trap tightens


The amount payable as installments and interests for loans taken by the SL government exceeds the income during the four months from January to April this year. The total income of the SL government during this period including loans and grants is Rs. 307,675 million while it had to pay Rs.457,450 million as installments and interest.

Accordingly, the government had to pay 150% of its income that also included loans and grants it received. During the period Rs. 283,800 million had to be paid as installments and Rs.176,650 million was paid as interests.

The financial crisis the government is confronting has aggravated and the country has been further choked in the debt trap.

This information has been obtained by the ‘Mid‐year fiscal position report‐2012 of the government.


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