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\'s UNF expects Wickremesinghe re-appointment, JVP wants \'coup\' leaders punished
Published Date: 02/05/2018 (Friday)
‘Citizens’ as suckers
Published Date: 02/05/2018 (Thursday)
Wheelchair Expedition 'Perseverance' Finished in Point Pedro Challenging 'Challenges in Life'
Published Date: 02/05/2018 (Thursday)
UNP: Purported pact with TNA, forged by SLPP
Published Date: 02/05/2018 (Thursday)
Diasporas as a force in foreign affairs: the case of Tamils in Britain and Canada
Published Date: 02/05/2018 (Thursday)
Life in 'slavery' or as a refugee? Cuban doctors' stark choice in Brazil
Published Date: 02/05/2018 (Thursday)
US lawmaker seeks an end to Chinese debt trap
Published Date: 02/05/2018 (Thursday)
US envoy called upon to exercise diligence - Cabraal
Published Date: 02/05/2018 (Wednesday)
Lanka’s high ageing population, a cause for concern - WHO
Published Date: 02/05/2018 (Wednesday)
Estate workers protest against Thondaman
Published Date: 02/05/2018 (Wednesday)
TNA says its support was conditional
Published Date: 02/05/2018 (Wednesday)
Teach everyone’s history for reconciliation
Published Date: 02/05/2018 (Wednesday)
First comprehensive survey of Sri Lankan art organized by a U.S. museum opens in Los Angeles
Published Date: 02/05/2018 (Wednesday)
New study estimates 500 Tamils disappeared in Army custody in Sri Lanka after surrendering at the end of the war in 2009.
Published Date: 02/05/2018 (Wednesday)
Ancient grape seeds may link Sri Lankan trading port to Roman world
Published Date: 02/05/2018 (Wednesday)
Mannar mass grave: Skeletal remains of 21 children unearthed
Published Date: 02/05/2018 (Wednesday)
HR should be part of daily life – HRCSL Chair
Published Date: 02/05/2018 (Wednesday)
The new arms race: American businesses vs. China’s government money How we outsourced foreign aid to private companies
Published Date: 02/05/2018 (Tuesday)
PM, ministers not removed; only functions suspended: GL
Published Date: 02/05/2018 (Tuesday)
President to appoint new govt. if P’ment undissolved: SLFP
Published Date: 02/05/2018 (Tuesday)
Sri Lanka needs its own leaders
Published Date: 02/05/2018 (Tuesday)
Former DIG Nalaka de Silva further remanded
Published Date: 02/05/2018 (Tuesday)
Investigate President’s claims on bribing MPs-TISL
Published Date: 02/05/2018 (Tuesday)
Lord Ahmad of Wimbledon has given the interim statement on the human rights situation in 2018 in the FCO’s 30 human rights priority countries.
Published Date: 02/05/2018 (Tuesday)
Sri Lanka President faces fresh challenge over his mental health
Published Date: 02/05/2018 (Monday)
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
<<<Dec - 2018>>>
SunMonTueWedThuFriSat
      1
2345678
9
10
1112131415
16
171819202122
23242526272829
3031     
 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
Proto Sumero Dravidian: The Common Origin of Sumerian and Dravidian Languages Conference Report:

Proto Sumero Dravidian: The Common Origin of Sumerian and Dravidian Languages

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.