Depreciation of the rupee has lead to an increase in debt – Cabraal

Depreciation of the rupee has lead to an increase in debt – Cabraal

Depreciation of the rupee has lead to an increase in debt – Cabraal

Written by Keshala Dias

04 May, 2018 | 12:35 am

COLOMBO (News 1st) – Former Central Bank Governor Ajith Nivard Cabraal speaking to reporters today (May 3), commented on the country’s present economic situation.

Cabrall says that all international rating agencies have placed Sri Lanka below the position the country was in 2014. He added that in 2014 the debt to GDP percentage was 71% and today it has risen to 77.6%.

Cabraal went on to note that the interest on loans has increased from Rs. 443 billion to Rs. 736 billion. He says the country’s total debt has increased to Rs. 10,313 billion from Rs. 7,391 billion in 2014.

The former Central Bank governor also commented on the depreciation of the rupee:

“Because of the depreciation of the rupee, in the first four months, the debt increased by Rs. 136 billion. Because of the depreciation of the rupee, in 2015, Rs. 285 billion was added to the national debt. In 2016, Rs. 186 billion and in 2017, Rs. 225 billion was added to the national debt. As of now, it has increased by Rs. 136 billion. In total, that’s Rs. 836 billion.”


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