According to the latest report from the Central Bank of Sri Lanka, the country’s total outstanding government debt reached 29,994.7 billion rupees by the end of 2025, marking a significant increase from 28,738.7 billion rupees at the end of 2024. This represents a rise of 1,255.99 billion rupees in just one year, intensifying concerns about the nation’s fiscal health.
The report details that domestic debt accounts for 18,675.3 billion rupees, while foreign debt stands at 11,319.4 billion rupees. The growth in debt highlights ongoing pressures on the government’s budget and underscores the challenges Sri Lanka faces in managing its financial obligations amidst economic uncertainty.
Analysts suggest that the rapid expansion of both domestic and foreign debt could have far-reaching implications for the country’s credit rating, borrowing costs, and long-term economic stability, emphasizing the urgent need for fiscal reforms and effective debt management strategies.
