Individual debt burden soars to Rs. 1.2 million

29 November 2023 08:55 am - 13 - {{hitsCtrl.values.hits}}

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Colombo (Daily Mirror) - Sri Lanka’s net per capita debt has reached an alarming figure of Rs. 1.2 million as of December 31, 2022, according to the annual report of the Auditor General marking a staggering increase from Rs. 264,811 recorded on December 31, 2012.

The comparison of total public debt against the median annual population reveals a noteworthy trend, showcasing a 62.53% increase in net per capita debt when compared to the previous year.

As of December 31, 2021, the net per capita debt stood at Rs. 759,471, indicating a rise of Rs. 474,887 in just one year.

Net debt per capita is a crucial metric that measures the value of a government's debt in terms of the amount attributed to each citizen within its jurisdiction.

The sharp rise in this figure raises concerns about the financial burden borne by the average Sri Lankan citizen.

In addition to the surge in net per capita debt, the report also highlights a significant increase in net borrowings, both domestic and foreign.

The figures reveal a spike of Rs. 1,865,589 million in net borrowings, further contributing to the country's mounting debt burden in 2022.

Moreover, the payment of interest on loans has witnessed a substantial uptick, increasing by Rs. 516,807 million or 49.30% in the year under review as compared to the preceding year.

This emphasizes the challenges Sri Lanka faces in managing its debt obligations and servicing its financial commitments.

Economists and financial experts are closely monitoring these developments, expressing concerns about the long-term implications of the rising debt burden on the country's economy.

In this context, the government is expected to face increased pressure to implement effective fiscal policies and debt management strategies to address this growing economic challenge.

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Comments - 13

UAli Wednesday, 29 November 2023 09:56 AM

Who were responsible for economical debacle would have to pay that amount to each

Perera Wednesday, 29 November 2023 11:51 AM

6.9m people who voted Rajapaksa family

Lal maduwela Wednesday, 29 November 2023 12:31 PM

It's clear Rajapak family misused the trust of the people.,not only who has voted for them entire nation. NO doubt whatever law they should have to repay money looted from the nation.

Grace Wednesday, 29 November 2023 09:59 AM

In a bankrupt country, people are also bankrupt. On this ground, people don't have to pay the debt.

Observer Wednesday, 29 November 2023 10:30 AM

So what?

Neil Wednesday, 29 November 2023 11:54 AM

Once you die, the debt will be passed over to the others. So, stupid Sri Lankans don't need to worry. Keep borrowing and enjoy life. Hooray......

Chamil Wednesday, 29 November 2023 12:02 PM

Who should be held responsible

lalit Wednesday, 29 November 2023 02:53 PM

Every voter will pay through taxes.... Instead of development you will see destruction

Aandha Wednesday, 29 November 2023 12:06 PM

Yet our government continues to maintain too many ministers in the cabinet. No justification except trying to keep the politicians happy. Ranil is flying all over with Sagala and some others around the world and spending more money without any benefit to the people. What we get from the IMF, we will get even if Ranil didn't go around like this. Ali Sabri too. The government also continues to give a lot of facilities to ministers, MPs, Former Presidents. You wouldn't see any of them experiencing financial difficulty like the ordinary people. Even though most of them do not have significant alternate income source (like a private business). Remember when Mahinda forgot to collect his salary as president for over a decade and then had someone close to him steal that money :D People of this country are paying higher taxes, higher power and water bills, more for petrol/diesel/kerosene. They are paying higher food prices. Yet the government continues borrow more money. So sad :(

Hard Truth Wednesday, 29 November 2023 12:16 PM

Land like no other. Thanks for SLFP and UNP legacy People will swipe their credit cards

Cherath Wednesday, 29 November 2023 12:19 PM

So in 10 years the debt owed by each Sri Lankan has gone from Rs.264,811 to Rs.1,200,000. Yet, what's amazing is the scramble for more loans with no methodology to pay, main source of foreign income from expenditure from tourists and handouts from foreign workers. Not a trace of manufacturing/industrialisation?????

DE Wednesday, 29 November 2023 04:43 PM

Or we can work on increasing the country's population so that the per capita debt comes down. Government might impose this if someone like Bandula advises them

Mohan Thursday, 30 November 2023 04:59 AM

We should have more children, so that the per capita debt goes down, LOL!

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Individual debt burden soars to Rs. 1.2 million

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