A Colombo-based think tank, Verité Research, says Sri Lanka could lose the Governance-Linked Bond offer of USD 70 million in debt relief due to a fiscal planning oversight.
In a post on social media, Verité Research states that Sri Lanka will receive USD 70 million in debt relief from its Governance-Linked Bond (GLB) upon meeting two revenue targets.
The think tank points out that, however, the issue lies with the Sri Lankan government’s revenue expectations in the fiscal strategy statement, which are lower than the GLB targets.
According to Verité Research, the GLB targets are 15.3% in 2026 and 15.4% in 2027, but the government’s targets are 15.2% in 2026 and 15.3% in 2027.
It is reported that the government’s revenue targets for the next two years follow the latest IMF expectations. But they are slightly lower than what’s needed to trigger the debt relief available from the Governance-Linked Bond.
As such, Verité Research proposed that the government adjust the revenue targets in the upcoming budget to match the GLB targets. (Newswire)
