Sri Lanka classified ‘less indebted’ by UN-ESCAP: Central Bank

(L-R) : Jeevith Senaratne, Director Operations - Star Garment Group; Shanaka Rabel, Group Chief Digital and Transformation Officer - Stretchline Holdings Ltd; Janaka Botejue, Chairman – Bernard Botejue Industries; Sanjeewa Kodikara, Chief Information Officer- Hirdaramani Group

Mar 25, 2013 (LBO) – Sri Lanka has been classed as ‘less indebted’ in five out of six debt indicators which assesses external debt vulnerability of a country, by the United Nations Economic Commission for Asia and the Pacific, the Central Bank said. There have been concerns over Sri Lanka’s rising commercial foreign debt, as well as sovereign guarantees.

Sri Lanka falls within to the less indebted category in when external debt is measured against exports of goods and non-factor services (122.6 percent compared to a threshold of 165 percent).

Sri Lanka’s external debt service payments was 10.7 percent of exports of goods and non-factor service against a threshold of 18 percent, and external interest payments was 3.7 percent against a threshold of 12 percent.

The present value of external debt was 40 percent of gross national income against a threshold of 48 percent.

The present value of external debt to exports of goods and non-factor services was 130 percent, against a threshold of 132 percent.

But Sri Lanka fell in the moderately indebted category when external debt was measured against gross national income, which was 37 percent, higher than a threshold of 30 percent.

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