Sunday, 22nd February 2015
By Paneetha Ameresekere
Sri Lanka's foreign debt servicing commitments in the 12-month period ending 31 December 2015 is equivalent to 106% of Sri Lanka's total foreign currency reserves, latest Central Bank of Sri Lanka (CBSL) data showed.
Further, such debt servicing commitments last month alone amounted to 31.7% of its total foreign currency reserves, statistics showed.
Meanwhile, the island's foreign debt servicing commitments in the first three months of the year will be equivalent to 48.5% of its foreign currency reserves, data further showed.
Whilst its foreign currency reserves amounted to US$ 6,280.50 million as at January 2015, its foreign debt servicing commitments in the 12-month period ending 31 December 2015 is estimated to be US$ 6,660.28 million, according to CBSL. This is equivalent to Rs 885,151.21 million on the basis that the current administered spot rate of the US dollar is Rs 132.90.
Further, Sri Lanka's foreign debt servicing commitments for the year are equivalent to 86.5% of its total official foreign reserves in the review period which was US$ 7,261 million. CBSL said the government's foreign debt servicing commitments last month (January) amounted to US$ 1,991.79 million or Rs 264,708.89 million. This was equivalent to 31.7% of the country's foreign currency reserves and 27.4% of the island's official reserves.
Meanwhile, Sri Lanka's foreign debt servicing commitments in the first three months of the current calendar year is estimated to be US$ 3,043.98 million or
Rs 404,544.94 million, according to CBSL. This is equivalent to 45.7% of its total foreign debt servicing commitments for the current year.
Further, the sum of US$ 3,043.98 million is equivalent to 48.5% of the country's foreign currency reserves and 41.9% of its total official reserves according to available data.
The government is seeking concessional funding from the IMF and the World Bank to tide over this crisis, according to reports.
