Sri Lanka Interim Debt Policy Overview
As its economic crisis worsened, Sri Lanka had to declare a moratorium on its external public
debt
As FX debt service payments became unfeasible in view of dire shortfalls in basic needs, the Authorities announced on 12 April 2022
an Interim Debt Policy to address this situation, whereby Sri Lanka suspended the servicing of affected external public debt
obligations
USD amounts safeguarded by the Interim Debt Policy
In USDm, from 12 April 2022 to 30 June 2022
Focus on SLDBs' treatment during the Interim Debt Policy
In USDm, Debt service on SLDBS, 12 April 2022 - 30 June 2022
Category
Type of
Safeguarded amounts
of debt
debt
Interest
Principal
Total²
Paid in USD
USDM
USDM
USDM
% of FX
reserves4
% of import
of essential
Paid in LKR
96
goods5
Refinanced³
Local Law
CG
25
217
242
13.3%
5.5%
Pending
Settlements
CG
290
185
476
26.2%
10.8%
Foreign
Law
SOES¹
3
38
41
2.3%
0.9%
Total debt
service
TOTAL
319
440
759
41.8%
17.3%
58
The Authorities have
ensured that the ad-hoc
treatment of SLDBs has
not depleted FX reserves
further
397
242
▸ The Interim Debt Policy allowed to alleviate external liquidity pressure, giving some time for the country to
engage with the IMF
Sources: Central Bank of Sri Lanka, Ministry of Finance, Economic Stabilization and National Policies
Notes: (1) Guaranteed SOEs' debt, (2) All saving figures displayed are indicative and subject to changes further to the ongoing reconciliation exercise, (3)
Maturities were extended through a refinancing of the outstanding instruments (4) Gross Official Reserves as at end July 2022 (USD 1,817m), including the
swap from PBOC, (5) Jan-July 2022 total Import of essential goods was equivalent to USD 4.4bn
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