As per Central Bank data, Sri Lankan government’s total debt stood at Rs.5707.8 billion at the end of March, 2012, out of which, Rs.2649 billion was foreign debt. However, despite the steep rise in debts, the debt to GDP (Gross Domestic Product) has been declining since 2010.
Incidentally, the Central Bank of Sri Lanka last week announced its plans to go for another international sovereign bond issue up to Rs.1 billion for the redemption of the country’s first sovereign bond issue which matures in October,2012.Moody’s in its report also identified strategic economic development initiatives, relatively sound banking system and support from official creditors as credit strengths of the country.
Meanwhile, external payment position vulnerability, large government debt burden and shallow domestic markets have been recognized by Moody’s in its report as the credit challenges Sri Lanka is faced with.
Moody’s changed its B1 rating on Sri Lanka on July 18, 2011 from ‘stable’ to ‘positive’, given the positive effects of robust growth and debt dynamics.
|See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.|