Sri Lanka has to settle USD 12.5 Bn in ISB over the next seven years - Cabraal

COLOMBO (News 1st); Sri Lanka's Central Bank Governor Ajith Nivard Cabraal said the island nation has to settle USD 12.5 Billion of debt in International Sovereign Bonds over the next seven years.

Speaking to the US-based CNBC, the Governor said the total foreign debt outstanding for 2022 is approximately USD 6.9 Billion.

"Out of the 6.9 Billion, most of the loans are Sri Lankan-based loans which we have already negotiated for rollover as well as certain multilateral debts which are also being funded with new receipts that are coming in," he said.

"The only area that we do see as some kind of risk, as well as concern, is the international sovereign bonds. Out of which we need to pay 1.5 Billion Dollars back this year. And we have already paid back 500 Million Dollars and we have one more million to be paid. Now the overall situation is like this. We have approximately a further 12.5 Billion Dollars of debt in ISBs' to be repaid over the next seven years," said Cabraal.

The Governor said the government of Sri Lanka has already made arrangements to pay back the next loan and will be funding that with alternative sources.

"Since it is difficult to go to the market at this stage we have found alternative sources of new financing which has assisted us to repay the debt of the ISBs," he stressed.

Cabraal said that Sri Lanka is monetizing certain assets and that strategy will allow the country to have a lot more sustainable debt portfolio.