Tamil Information Centre
User Name:   
Password:   
  Remember Me  
Sign up  |  Forget password
Home   
Search
    Contact us
SL’s external debt rises $ 5.4 b in 2017: CB
Published Date: 02/05/2018 (Wednesday)
  • Total debt increased to $ 51.8 billion, rises to 59.5% as a percentage of GDP 
  • Capital repayments hit to $ 3.1 billion, interest payments reach $ 1.4 billion from $ 1.2 billion in 2016 
  • Bunching of debt from 2019 remains a concern says Central Bank, warns rising global interest rates could raise debt servicing cost

Sri Lanka’s total external debt increased by $ 5.4 billion last year, raising the country’s total debt to $ 51.8 billion by end-2017, the Central Bank said in its latest annual report. 

With the increase in government external debt, the total outstanding external debt of the country as a percentage of GDP increased to 59.5% by the end of last year from 56.8% at the end of 2016. The Government raised $ 4 billion in 2017 by issuing an international bond, and program and project loans, the Central Bank added.   

“Positive net inflows to the government securities market further contributed to the higher external debt position of the government. Outstanding external debt of deposit taking corporations declined by $ 79 million to $ 8.7 billion, mainly due to the decline in debt securities holdings of commercial banks. A notable increase was recorded in the outstanding external debt of private sector corporations, inter-company lending of direct investment enterprises during 2017,” the report said.    

Nonetheless the long-term portion of the total external debt increased, albeit marginally, to 85.2% in 2017, compared to 84.2% in 2016. “With a parallel decline in short-term debt showing a smooth transition towards longer-term maturities. Subsequent to the increase in government eternal debt, the share of government debt in total outstanding external debt stood at 60.7% by end 2017 compared to 58.6% in 2016.” 

Foreign debt service payments, which consist of capital repayments and interest payments, continued to increase in 2017. Capital repayments decreased to $ 3.1 billion in 2017 from $ 3.2 billion in 2016 of which general government account for $ 1.3 billion. Interest payments increased moderately to $ 1.4 billion from $ 1.2 billion in 2016. 

“The decline in interest payments by the private sector and deposit taking corporations was outweighed mainly by the increase in interest payments on the general government debt obligations. Since the surge in debt service payments was lower than the increase in earnings from merchandise exports and services, total external debt service payments such as a percentage of the export of merchandise goods and services declined to 23.9% in 2017 from 25.6% in 2016. Further, as government debt represents the major part of the country’s debt stock, government debt service payments accounted for 53% of total debt service payments last year.” 

The Central Bank annual report reiterated that bunching of maturities of external sector liabilities, particularly with repayments doubling from 2019 to 2023, remained a concern in the short to medium term. 

“The overall increase in external debt of the country will also have a significant impact on the external current account through higher interest payments. The global interest rates demonstrate an increasing trend due to recent interest rate hikes announced by the US Federal Reserve with expectations of further hikes by major central banks. The rise in interest rates is likely to have an impact on Sri Lanka’s external sector by way of increasing debt servicing cost.”             

Source: Daily FT

Share on Facebook


 Latest 25 News/ பிந்திய 25 செய்திகள்:
Sri Lanka Apparently Target of an Undeclared War
Published Date: 02/05/2018 (Monday)
Sri Lanka: Wartime ministers admit to military executing surrendered Tamils (VIDEO)
Published Date: 02/05/2018 (Sunday)
Mahinda establishes rapport with Modi, "visibly" makes up with India
Published Date: 02/05/2018 (Sunday)
Sri Lanka seeks UN reprieve over war crimes probe
Published Date: 02/05/2018 (Saturday)
Human Rights Council holds high-level panel on the seventieth anniversary of the Convention on the Prevention and Punishment of the Crime of Genocide
Published Date: 02/05/2018 (Saturday)
Suppression of Buddhists in N-E: Govt. not keen to curb situation: Nalaka Thera
Published Date: 02/05/2018 (Friday)
Admiral Wijegunaratne’s involvement with murder suspect: TNA alleges President interfered in CID probe TNA admits Lt. Commander Hettiarachchi not ‘Navy Sampath’
Published Date: 02/05/2018 (Friday)
Aid to Sri Lanka never attached to politics: FM
Published Date: 02/05/2018 (Friday)
Sri Lanka cabinet snubs President over arrest of military chief
Published Date: 02/05/2018 (Friday)
A Manifesto for Socialist Development in the 21st Century
Published Date: 02/05/2018 (Thursday)
Sri Lanka: Human rights to dismantle debt trap, says UN expert
Published Date: 02/05/2018 (Wednesday)
University Teachers Forum Hyderabad Condemns the Raid at Prof Satyanarayana’s House
Published Date: 02/05/2018 (Wednesday)
A Concert for the Ages Ode to the Tamil Language
Published Date: 02/05/2018 (Wednesday)
Fonseka’s shocking disclosure
Published Date: 02/05/2018 (Wednesday)
Sri Lankan president's anger over airline cashew nuts
Published Date: 02/05/2018 (Monday)
USAID invests US$ 19 mn for youth empowerment
Published Date: 02/05/2018 (Saturday)
President meets representatives of international donor agencies providing development aid to Sri Lanka
Published Date: 02/05/2018 (Saturday)
The Missing Politics of Female Empowerment
Published Date: 02/05/2018 (Saturday)
Tamil Nadu Governor to decide on Rajiv Gandhi’s killers assassination case
Published Date: 02/05/2018 (Friday)
OMP wants officers accused of enforced disappearances suspended
Published Date: 02/05/2018 (Friday)
Muslim groups call for female circumcision to be medicalised
Published Date: 02/05/2018 (Friday)
Traditional cash crops under threat from palm oil, warns environmental regulator
Published Date: 02/05/2018 (Friday)
Sri Lanka joins the Convention on Cluster Munitions
Published Date: 02/05/2018 (Thursday)
Jaffna – Beginning To Awake As Provincial Elections Seem Nearing
Published Date: 02/05/2018 (Wednesday)
Islam shows its female face with rise of women mosques
Published Date: 02/05/2018 (Wednesday)
Donate
Support our work to bring rights to life in any way big or small
 Amount:

Donate using PayPal

Select dates to view
past and future events
<<<Sep - 2018>>>
SunMonTueWedThuFriSat
      
1
2
34
5
6
7
8
9
10
11
121314
15
16
1718192021
22
23
2425
26
2728
29
30
      
 Stand up for Rights and Justice
Call to Ban Monsanto’s pesticide
Read more...
Take Action
Trump’s child hostages
Set Noura Free -- sign now!
Tamil men accuse continuing torture in Sri Lanka Take a stand against torture and urge UN Human Rights commission for human rights to investigate
Latest Publication
Armament for Repression: Militarisation of Sri Lanka Conference Report:

Armament for Repression: Militarisation of Sri Lanka

Read more...

Thiruvalluvar
About us
Site Help
Getting in touch
Other
Facebook Youtube twitter
Sitemap  |  Privacy Policy  |  Terms and Conditions
Copyright © 2018 ticonline.org, All rights reserved.