October 04, Colombo (LNW): Sri Lanka’s foreign borrowing has surged to a staggering USD 37 billion—approximately Rs. 19.6 trillion—prompting fresh scrutiny from the nation’s parliamentary Committee on Public Finance (CoPF).
The figure was disclosed during a recent session of the CoPF, chaired by MP Dr Harsha de Silva.
Officials from the State Debt Management Office, who appeared before the committee, confirmed the current debt total and clarified that all international borrowing activities are now administered exclusively by their office.
This centralisation of debt operations is intended to provide greater control and oversight, though questions remain about the capacity and technical expertise within the office to manage such a complex and high-stakes portfolio.
Dr de Silva expressed concern over the scale of the debt and emphasised the urgent need to strengthen institutional capacity within the debt management apparatus.
He stressed that addressing the country’s financial vulnerabilities would require not only policy reform but also the recruitment and retention of skilled professionals capable of navigating the complexities of global financial markets.
According to CoPF discussions, Sri Lanka’s current foreign debt obligations span multiple creditors, including bilateral partners, multilateral lenders, and international bondholders. The committee underscored that future borrowing must be approached with greater strategic clarity, balancing immediate fiscal needs with long-term sustainability.
Committee members also raised questions about transparency in past borrowing decisions and the lack of detailed public reporting on loan terms, interest rates, and repayment timelines.
Some MPs urged the introduction of new legislation to increase parliamentary oversight of foreign borrowing, suggesting that a more rigorous framework could prevent the accumulation of unsustainable debt in future.
