Sri Lanka has settled $1.36 billion in external debt servicing during the first half of 2025, covering 55% of the $2.45 billion due for the full year, Daily FT reported, citing data from the Public Debt Management Office and the Central Bank of Sri Lanka (CBSL). This leaves $1.09 billion to be met in the second half of the year.
Debt repayments picked up significantly in the second quarter, with $952 million settled compared to $406.6 million in the first quarter. Of the Q2 total, $715 million was principal repayments and $237 million interest payments. By creditor type, commercial borrowings accounted for $458 million, multilateral creditors $279 million, and bilateral lenders $215 million. Commercial debt servicing mainly related to syndicated foreign currency term loans.
At the same time, the Government secured $110 million in new loans from multilateral creditors and $9 million from bilateral sources during the quarter.
As of end-June 2025, Sri Lanka’s total external Government debt stood at $37.14 billion, a slight reduction of $104 million from $37.24 billion at end-March. The composition of external debt was 36% multilateral, 34% commercial, and 30% bilateral. International Sovereign Bonds (ISBs) remained dominant, making up 81% of commercial debt, amounting to $10.25 billion, while syndicated foreign currency loans accounted for $2.43 billion.
Daily FT noted that Sri Lanka has already restructured 98% of its ISBs, with principal repayments scheduled to commence in 2028.
On the domestic side, total debt stocks stood at $65.5 billion, with Treasury bills and bonds making up $63.4 billion.
In the first quarter, debt servicing comprised $147.9 million in principal repayments and $258.7 million in interest, totalling $406.6 million. Of this, $237 million was to multilateral creditors, $88.5 million to commercial borrowings, and $80.4 million to bilateral lenders. New lending during Q1 amounted to $419.3 million from multilateral creditors and $8.8 million from bilateral sources.
Sri Lanka Settles 55% of External Debt in H1 2025
