Governor of the Central Bank of Sri Lanka (CBSL) Ajith Nivard Cabraal has given a breakdown of how Sri Lanka plans to repay the US$ 6.9 billion in foreign debt which is due this year.
Speaking during an interview with CNBCi, Cabraal said out of the US$ 6.9 billion most of it is Sri Lankan- based loans that have already been negotiated for rollover.
He further said certain multilateral debts which are also being funded with new listings that are coming in.
Stating that there isn’t much of a risk in this regard, he said the only area of concern is the International Sovereign Bonds (ISB).
Among the ISBs, Sri Lanka must pay back US$ 1.5 billion this year and the Government has already settled US$ 500 million at present, he pointed out.
He said following this payment, Sri Lanka has approximately a further US$ 12.5 billion dollars in debt in ISBs to be settled over a period of 07 years.
The CBSL Governor said that Sri Lanka has already commenced preparations to repay the next loans funded by alternative sources.
Cabraal explained that alternative sources of new financing have assisted Sri Lanka to repay its debts in ISBs. (NewsWire)
.@an_cabraal, governor of the Central Bank of Sri Lanka @CBSL, explains how the country is planning to repay the $6.9 billion in foreign debt due this year. pic.twitter.com/g2iHXPfCIJ
— Squawk Asia (@asiasquawkbox) January 24, 2022
