Local Debt to GDP ratio surpasses most Asian countries

COLOMBO (News1st) - The current economic situation of the country has raised concerns. The Ceylon Today reports that Sri Lanka's bunching impact of debt will create significant pressures not only on the government budgetary operations but also on the balance of payment. Sri Lanka's Debt to GDP ratio stands at 77.6% and it is higher than several other countries in the Asian region including India, Pakistan, Vietnam, Malaysia, Thailand, and Nepal. By the end of 2014, the Debt to GDP ratio stood at 71.3%, by 2015 the government had a debt of Rs. 7.39 trillion. The country's debt has increased from Rs. 25 billion in 1977 to Rs. 10.31 trillion by the end of 2017. This sharp increase in public debt was mainly due to the continuation of budget deficits and the depreciation of Sri Lankan rupee against major currencies. Sri Lanka's total outstanding debt in 2017 comprises 39% of International Sovereign bonds and other non-conventional borrowings while 25% of the total foreign debt is due to the World Bank and the Asian Development Bank. Meanwhile, Treasury and Central bank officials will visit Japan and China to implement a plan for an international sovereign bond issue to raise US$ 1 billion through Panda and Samurai Bonds. The Deputy Secretary General of the National Economic Council C.J.P Siriwardena has said that this year, the government's borrowing needs would be over Rs. 2 trillion, excluding the fact that we have to meet maturing treasury bill liabilities.