Fri, 29 Mar 2024 Today's Paper

President makes ambiguous claim on debt restructuring

18 May 2023 09:45 am - 0     - {{hitsCtrl.values.hits}}

A A A

The information presented by the president is most easily interpreted as Sri Lanka pursuing a USD 17 billion reduction on the total stock of debt. However, it does not preclude another interpretation: a reduction in the flow of debt related repayments due from 2023-2027. 


To check the claim, Factcheck.lk consulted the IMF Country Report on Sri Lanka (IMFCR) (No.23/116) and the investor presentation by the Ministry of Finance (MoF) in March 2023. IMFCR states that “debt service reduction during 2023-27 should be sufficient to close external financing gaps. Under the staff baseline scenario, USD 17 billion in [external] debt service reduction is required”. The president’s claim uses this same language.


The MoF investor presentation in March 2023 shows this as a USD 17 billion reduction in the flow of re-payments between 2023-2027, not the stock of debt (see Exhibit 1). The flow of repayments on new loans taken, and to multilateral creditors, are not expected to be reduced. Instead, the USD 17 billion reduction is through an expected reduction of 75% in the flow of repayments currently due between 2023-2027 to existing bilateral and private creditors.

The president challenges parliament: “So, we are trying to get a 17 billion debt reduction on that side. Do you want it or not” – allowing the interpretation that the reduction will be in the debt stock. However, the description of the reduction that he provides uses the language of the IMFCR, where the reference is to the flow of repayments.
Therefore, FactCheck.lk resolves the ambiguity and classifies his statement as TRUE.

FactCheck is a platform run by Verité Research. 
For comments, suggestions and feedback, please visit www.factcheck.lk.   


Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

  Comments - 0

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment





Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

VAT increase: SOUNDs death knell for publishers, readers

Though the Government imposed VAT (Value Added Tax) on vegetables and other e

How female change-makers are driving Sri Lanka’s energy saving platform

Saving energy has become more of a responsibility than a habit in today’s c

A dull Ramadan awaits Muslims amidst the Soaring Cost of Living

In the coming days, Muslims across the world will welcome the Holy Month of R

New wildlife underpass to curtail HEC

As of February 2024, Sri Lanka lost another 38 elephants as a result of the H