📉 Sri Lanka’s Central Government Debt Decreases by US$ 1.39 Bn in Q1 2026

Sri Lanka’s total central government debt stock recorded a notable nominal decline during the first quarter of 2026, driven by reductions in both domestic and external obligations. • Overall Debt Figures: Total debt fell by 1.39% from US$ 100.36 Bn at the end of December 2025 to US$ 98.97 Bn as of March 31, 2026. However, due to exchange rate depreciation (moving from LKR 309.99 to LKR 315.19 per USD), the Rupee-denominated value saw a slight increase from LKR 31,109 Bn to LKR 31,193 Bn. • Domestic vs. External Breakdown: - Domestic Debt: Decreased by US$ 1.20 Bn, falling from US$ 62.69 Bn to US$ 61.50 Bn. - External Debt: Saw a nominal decrease of US$ 195 Mn, moving from US$ 37.66 Bn to US$ 37.47 Bn. • Debt Servicing & Restructuring: The government settled a total of US$ 8.09 Bn in debt service payments during Q1 (US$ 7.57 Bn domestic and US$ 530 Mn external). Regular debt servicing resumed following finalized bilateral agreements with Germany and Belgium, building on the 98% participation rate achieved in the late 2024 International Sovereign Bond (ISB) exchange.