President Ranil Wickremesinghe while calling upon all Parliamentarians to unite in the collective endeavour of advancing the country yesterday said that the government has secured a grace period until 2028 for repaying the principal loan.
He said that the repayment period for clearing the entire loan has been extended by 8 years, meaning that the debt should now be fully settled by 2043.
“There is flexibility to gradually increase principal loan repayments, allowing us to defer loan servicing costs. This has resulted in Sri Lanka retaining a debt service of US$ 5 billion,” he said. Making a special statement in Parliament yesterday about the on-going debt restructuring efforts the President said foreign debt amounts to US$ 37 billion, comprising US$ 10.6 billion in bilateral debt, US$ 11.7 billion in multilateral debt and US$ 14.7 billion in commercial loans, including US$ 12.5 billion in sovereign bonds. He highlighted today in Parliament that false propaganda regarding debt restructuring
and related matters are being spread by various individuals both inside and outside the parliament. He emphasised that while the government pursues policies beneficial for the country, critics continue to fabricate different narratives solely for political gain.
The President underscored that Sri Lanka has achieved a significant milestone among middle-income countries by successfully navigating the debt restructuring process, which he described as a notable accomplishment and good news for the nation.
He stressed the importance of continuing the government’s programme without turning back, irrespective of future changes in leadership.
The President emphasised his non-involvement in politics over the past two years, highlighting his commitment to making decisions solely for the benefit of the country rather than for political gain or popularity.
