Sri Lanka debt profile improves mid-year: Central Bank

Aug 08, 2014 (LBO) – Sri Lanka’s state debt statistics has improved by mid 2014 with public debt to gross domestic product falling to 7.4.3 percent, and foreign debt falling to 32.9 percent, the Central Bank said. Domestic debt was 44.3 percent of projected GDP down from 44.2 percent in December and down from 86.2 percent in 2005.

Average time to maturity of domestic debt was 6.0 years, up from 4.8 year by end December and 1.9 years in 2009.

Maturity of the longest dated Treasury bond was now 30 years, up from 10 years in 2009.

Meanwhile interest rates on domestic debt has also fallen with 3-month Treasuries down to 6.51 percent by June 2014 from 7.54 percent in December, 6-month Treasuries down to 6.69 percent from 7.85 percent and 12-months down to 6.99 percent from 8.29 percent.

Five-year bond yields were down to 8.93 percent by June from 10.64 percent in December, 10 year yields were down to 10,00 percent from 11.80 percent and 30-year bonds were down to 11.75 percent from 12.50 percent.

There have been concerns over Sri Lanka state debt, especially rising foreign commercial debt. Several state agencies have also started to borrow outside the budget, though Treasury guarantees which a