Fake Data Claims Rejected as Sri Lanka Shows Debt Reduction

COLOMBO (News 1st); Sri Lanka’s total public debt has declined compared to previous levels, with the government highlighting early progress on key fiscal targets and warning against the spread of misinformation surrounding the country’s economic data.

Addressing Parliament, Deputy Minister of Finance Dr. Anil Jayantha Fernando stated that as of the end of March 2026, the central government’s debt stood at approximately US$ 98.96 billion. 

When debts of provincial councils, local government bodies, and state-owned enterprises are included, the total rises to about US$ 102.2 billion.

He stressed that this figure represents a reduction compared to the end of 2025, indicating improvements in debt management despite ongoing economic challenges.

“By the end of March 2026, Sri Lanka’s central government debt stood at approximately US$ 98.96 billion. When provincial councils, local authorities, and state-owned enterprises are included, the total amounts to around US$ 102.2 billion. Compared to the end of 2025, this is a reduction,” he said.

Dr. Fernando clarified that while debt figures are reported in rupees domestically, international assessments are based on US dollar valuations, and Sri Lanka has maintained effective management under both measures.

“These figures are part of accounting data, but the correct interpretation of debt must be made in dollar terms. Whether viewed in rupees or dollars, we have successfully managed our debt,” he added.

The Deputy Minister also highlighted that Sri Lanka had been given a target of bringing its debt down to 95 percent of Gross Domestic Product by 2032. However, he noted that the country has already moved significantly toward achieving that goal much earlier than expected.

“We were tasked with reaching a debt sustainability level of 95 percent of GDP by 2032. However, we have been able to approach this target much earlier, by the end of 2025 itself,” he said.

He further pointed out that, due to the absence of fresh borrowing, the government had also achieved a historic reduction in the budget deficit, bringing it down to 2.3 percent of GDP in 2025, the lowest level recorded since 1957.

“Since we have not taken on new debt, even with measures such as the supplementary estimate, we were able to reduce the budget deficit in 2025 to its lowest level since 1957, which stands at 2.3 percent of GDP,” he stated.

Despite these improvements, Dr. Fernando raised concerns about the circulation of misleading and inaccurate economic data in the public domain, cautioning that such misinformation undermines informed policy debate.

“At a time when we are progressing with economic stability, there is a tendency to present incorrect information instead of engaging with official data and sound policy. There is little legal or ethical accountability for such claims, and many of them turn out to be false,” he said.

He specifically rejected claims that the government’s first-quarter budget deficit had reached Rs. 606 billion, describing them as entirely inaccurate.

“There are completely incorrect figures being circulated, such as claims that the government’s first-quarter budget deficit was Rs. 606 billion. These are false,” he added.