Sri Lanka plans to repay approximately US$1 billion in foreign debt during the current year as the country continues to meet its debt-servicing commitments, according to the Ministry of Finance.
NewsFirst reported that the ministry confirmed foreign debt installments of US$1 billion were also settled last year, pointing to a steady pace of repayment as the island works through its post-restructuring obligations.
The ministry linked its ability to keep up with repayments to stronger-than-expected government revenue collection. During the period elapsed so far this year, the Inland Revenue Department, Sri Lanka Customs and the Excise Department have all earned revenues exceeding their targets, the ministry said, describing the performance as strong support for economic stability.
Officials added that plans are in place to further strengthen government revenue by continuing to exceed collection targets in the final quarters of the year.
The repayment plan reflects Sri Lanka’s continued efforts to rebuild fiscal credibility after its 2022 sovereign default and subsequent debt restructuring. Steady debt servicing and higher tax and customs revenue are central to the government’s commitments under its International Monetary Fund-supported reform programme, which ties fiscal consolidation to sustained increases in state income. Consistent repayment is also seen as important for maintaining investor confidence as the country works to normalise access to international financial markets.
