Sri Lanka to make US$2.6 billion in loan repayments in first half of year

Sri Lanka's cabinet has approved loan repayments worth US$2.6 billion in the first half of this year, in line with its debt suspension plans, its cabinet spokesperson said on Tuesday (Feb 21).

The island of 22 million people is tangled in the worst financial crisis in over seven decades, triggered by a severe shortage of foreign exchange that forced the country to announce a suspension of foreign debt repayments in April 2022.

However, Sri Lanka will continue to repay multilateral loans from several organisations including the World Bank and Asian Development Bank, cabinet spokesperson and Transport Minister Bandula Gunawardana told reporters.

The loan repayments will include US$2 billion in foreign loan repayments and US$540 million in interest payments.

Repayments will also include US$709 million in dollar-denominated Sri Lanka Development Bonds and US$46 million in interest payments, Gunewardana added.