Investor Presentaiton
Sri Lanka is also facing a very significant external financing gap over the next years
To ensure that it can credibly rebuild its buffers, Sri Lanka will have to cover its external financing gap over the program period,
through new external funding and an external debt service relief
1 Calibrating the external financing gap...
2023-2027, in USDbn
23.6
14.2
Sizing the efforts in the 2023-2027 external debt service
PPG contractual external debt service incl. full arrears clearance (USD 2.8bn), 2023-
2027, in USDbn
2
1.9
15.1
3.1
Existing debt
27.6
Excluded from the
Multilateral creditors
I
5.7
debt treatment
Bilateral creditors
7.1
perimeter
(29.5)
Paris Club ("PC")
2.4
USD 7.6bn
End-2022 GIR Current
Account¹
Financial
Account¹
Debt service Financing gap End-2027 GIR²
due
China
3.0
India
1.6
3.75
treatment will have
to provide the
necessary relief
■ Other IFIs
financing
3.0
■IMF financing
16.8
... to be bridged through (i) USD 16.8bn in external debt service
reduction and (ii) USD 6.75bn in new multilateral funding
2023-2027, in USDbn
The external debt
Other Non-Paris Club
0.2
Included in the
Private creditors
14.8
debt treatment
ISBs
12.1
CDB commercial loans
2.7
perimeter
USD 21.9bn
Others
New debt³
0.0
1.9
c. 75% debt service
reduction
Total
29.5
■External debt
relief
Source: IMF
Notes: (1) Non-Interest Current Account and Financial Account Flows (incl. Project Loans disbursements), (2) As per its IMF program, Sri Lanka has to rebuild its gross international reserves to
about 100 percent of the ARA metric by end-2027 (which corresponds to 6.0 months import cover) (3) New FX debt assumed to be disbursed from IFIs and for Project Loans during 2023-
2027, (4) Debt service on Emergency Assistance Credit Lines (included under bilateral creditors) will be excluded from the debt treatment
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