Professor Wasantha Athukorala from the Department of Economics and Statistics at Peradeniya University has expressed concerns over the financial burden on families due to the increased government debt interest payments. According to his analysis, a family of four in the country is projected to spend 38,757 rupees monthly next year to cover the interest on government loans.
He highlighted that the government’s expenditure on loan interest is expected to reach 2,65,100 rupees in the upcoming year, showing a significant increase compared to 1,56,500 rupees in 2022 and 2,19,300 rupees in the current year.
This represents a 40% surge compared to the previous year, putting a considerable financial strain on households. In 2022, a family of four spent 32,061 rupees on government debt interest payments. The professor emphasized that the debt interest payments for the upcoming year will consume 65% of the government’s expected total revenue and nearly 70% of the anticipated tax revenue.