Sri Lanka’s central government and state enterprises were up to 1,368 billion US dollars in arrears in foreign and domestic debt and suppliers credits, up to June 2022, an official statement has shown.
Sri Lanka defaulted on April 2022 despite ending a 30-year civil war, after running up foreign debt rapidly through several years of monetary instability, while operating a highly discretionary ‘flexible inflation targeting’ regime as the country lost the ability to make foreign payments freely.
By end June 2022, Sri Lanka had 40.6 billion dollars of foreign borrowings made up of 35.5 billion US dollars in central government debt, 1.9 billion in state enterprise guaranteed debt and 3.1 billion US dollars, while the central bank had borrowed another 3.1 billion US dollars.
Of that 1.4 billion in swap from China was unused. Sri Lanka also owed another 1.9 billion US dollars to the Asian Clearing Union. However there are also inflows from the ACU to Sri Lanka.-EconomyNext (NewsNow)
