Govt has no intention to tarnish its unblemished debt service record, CBSL clarifies reports

The Government has no intention to tarnish its unblemished debt service record by delaying the settlement of maturing debt obligations, the Central Bank clarified.

The clarification came after a newspaper today publishing a report of a planned delay in settlement of dues on SLDBs and foreign currency loans obtained by the Government from domestic banks.

“The Central Bank wishes to inform investors and the general public that debt service payments, interest, and capital, are being met in a timely manner on account of SLDBs and Foreign Currency Loans from Domestic Banks, as well as all other debt obligations of the Government,” the Central Bank emphasized.

“There is no plan to delay or differ such payments as reported in the said newspaper, and accordingly, the newspaper report is completely erroneous with no basis for the contents reported.”

So far, during 2021, on account of SLDBs and foreign currency loans from domestic banks, debt service payments of close to United States Dollars 1,200 million have been met.