Central Bank Governor Dr. Nandalal Weerasinghe has rejected the claim that Sri Lanka will again face a financial crisis after debt repayments start. Speaking to reporters, he said that Sri Lanka has restructured its debt to make it affordable.
If the criteria are followed, there is no need to fear financial insolvency. He said that debt restructurings have been carried out only to ensure sustainable debt servicing.
He said that according to the policy agreement reached with bilateral creditors, foreign currency debt servicing should be only 4.5 percent of the gross domestic product (GDP). He said that it had been as high as 9.2 percent in the past.