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The debt restructuring process is nearing its final stage and efforts are being made to complete it by December 31, Labour Minister and Economic Affairs Deputy Minister Prof. Anil Jayantha Fernando told Parliament.
The Minister said this while opening the debate on the motion related to the interim Vote on Account yesterday (5). The Vote on Account (VoA) through which the new Government is seeking Parliament’s approval to spend Rs.1,403 billion for the first four months of 2025 was presented to Parliament by Deputy Minister Anil Jayantha Fernando. The Deputy Minister pointed out that the delay in the debt restructuring process alone will result in an additional US$ 1.7 billion in arrears of interest.
Expressing further views, the Deputy Minister also said, “We are stuck in an unsustainable debt trap. If the economy had been truly built with the loans taken, we should be reaping the benefits by now. The interest on the loans taken so far has been created because the loans taken have not really contributed to the production process of this country.”
“For the first four months of the Vote on Account, Rs.1,000 billion excluding recurring expenses, Rs.425 billion for capital expenditure and Rs.1,175 billion for foreign debt restructuring and other debt servicing are required,” he stated.
The Minister further added “Accordingly, the estimate is Rs.2,600 billion. The Government’s revenue estimate is Rs.1,600 billion. The basic borrowing limit is Rs.1,000 billion.”
Ishara Mudugamuwa
