May 13, Colombo: Sri Lanka's Central Bank said today that the country has continued to improve its external debt sustainability indicators and placed in the "less indebted" category in the United Nations Economic Commission for Asia and the Pacific (UNESCAP) classification.
In 2013, Sri Lanka has been categorized as 'less indebted' in five out of six external debt indicators in accordance with the parameters defined in the manual on Effective Debt Management of the UNESCAP, to assess the external debt vulnerability of a country. In the remaining indicator, Sri Lanka is placed in the 'Moderately Indebted' category.
Among the six indicators, the only indicator in which Sri Lanka is placed in the "moderately indebted" category (>30% and <50%) is "the Disbursed external debt outstanding to Gross national income" category, where Sri Lanka's indicator value is 35.1%,which is marginally above the threshold level specified for the "Less indebted" category. The indicator value in 2013 improved from a 37.2% in 2012.
The present external debt was 39.8% of gross national income against a threshold of 48%.
Sri Lanka's Total External Debt Service Payments was 11.2% of exports of goods and non-factor service against a threshold of 18%, and External Interest Payments was 3.9% against a threshold of 12%.
The net present value of external debt to exports of goods and non-factor services was 121.0%, against a threshold of 132%.
The indicators also show that Sri Lanka has displayed continuous improvements in five of the six external debt indicators in the year 2013, when compared to 2012.