May 22, Colombo: Senior Deputy Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe today (22) stated that all foreign loan installments due in the first four months of this year have been properly paid.
He said US $ 4.8 billion in foreign debt is due to be paid this year and out of that $ 1.6 billion had already been paid.
Dr. Nandalal Weerasinghe made these comments participating in a discussion held via video technology regarding the country’s economic situation and challenges.
He said Sri Lanka has maintained a good track record in repaying its foreign debt and has made repayments on time.
At the end of last year and earlier this year, the country had a reserve of US $ 7.5 billion and the reserves had fallen slightly due to payment of domestic debt, the senior deputy governor said.
However, due to last year’s plans and actions taken, the reserves have been managed properly and therefore, even by the end of April, we were able to maintain a foreign reserves of over US $ 7 billion.
“This will enable us to pay the remaining US $ 3.3 billion of foreign debt due this year on time in the future,” he said.
He added that the government is in talks with the International Monetary Fund (IMF), World Bank, Asian Development Bank and the Central Bank of India to meet the future financial needs.
Meanwhile, the Deputy Governor of the Central Bank of Sri Lanka, HA Karunaratne participating in the discussion said the banking system in Sri Lanka is stable.
The official said the banking industry is working closely with its customers and it’s at a positive level.
“It is the responsibility of the banks to protect their customers and the banking industry is in compliance with Sri Lanka's as well as international standards and conditions," he said.
The Central Bank of Sri Lanka has provided necessary assistance and facilities to the banks through proper regulations and accordingly, the banking system has the ability to properly manage the economy affected by the global COVID-19 epidemic.