The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning
Minister Anil Jayantha stated that Sri Lanka is not facing an inability to borrow, noting that debt restructuring after the default is nearing completion and that the Government has been servicing debt, including foreign debt, in 2024 and 2025. He explained that LKR 1.6 trillion in accumulated arrears arose from unpaid interest during the restructuring period, emphasizing that this was interest cost added to debt arrears rather than new principal borrowing.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Speaker, there is no issue of inability to borrow. Following the declaration of default, debt has been restructured and we are finalizing agreements. After stabilizing the economy, we have been servicing debt in 2024 and 2025, particularly foreign debt.
¶ 02 Further, regarding the accumulation: due to the restructuring process — i.e., arrears from non-payment — past due interest has accrued. Interest is a cost, not principal, but it has been added to debt as arrears, amounting to LKR 1.6 trillion. We are not unable to borrow; we are servicing debt properly.
Provenance
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- Hansard, Thursday, 27 November 2025 ·No. 23013 ·English daily/uncorrected Hansard
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Cite as: The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning. 10th Parliament, Parliament of Sri Lanka. Hansard, 27 November 2025. No. 23013. Politick, https://staging.politick.io/lk/speeches/5274