Sri Lanka Economic and Public Debt Analysis
Amidst adverse external funding conditions, Sri Lanka had to rely on domestic financing
As the COVID-19 induced global economic downturn led to a significant fall in the price of Sri Lanka's International Sovereign Bonds
("ISBS") and to the loss of international market access, the Government had to rely mostly on domestic financing
Price evolution of Sri Lanka's selected ISBS
In % of nominal value
Sri Lanka's Government foreign versus domestic financing¹
In LKRbn
2,500
2,000
100
2,072
June 2021-June 2022
comparison
1,500
1,751
896
1,000
80
500
437
947
759
543
324
60
(83)
21
60
(500)
33.7
2018A
2019A
2020A
40
40
29.6
Foreign Financing
(14)
2021P 2021P June 2022P June
Domestic Financing
(44)
28.3
CBSL net credit to Government²
20
28.2
Outstanding amount, in LKRbn
Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22
Sri Lanka 2022 USD 1bn 5.875%
Sri Lanka 2025 USD 1.5bn 6.85%
Sri Lanka 2027 USD 1.5bn 6.2%
Sri Lanka 2030 USD 1.5bn 7.55%
As at end
2018
2019
2020
2021
473.1
363.5
870.3
2,095.5
Sources: Central Bank of Sri Lanka, Ministry of Finance, Economic Stabilization and National Policies, Bloomberg
Note: (1) The chart shows net foreign and net domestic financing, (2) The chart shows outstanding stock figures as at year endView entire presentation