A press release issued by the Sri Lanka Human Rights Centre has challenged circulating claims that the government has paid USD 8.094 billion in debt and interest this year, stating that the figure represents accounting totals rather than a reduction in the country’s overall debt burden. The statement argues that while repayment figures are being cited, both domestic and foreign debt levels have continued to rise in the first quarter of 2026.
According to the press release, official records from the Public Debt Management Department indicate that the principal amount paid is USD 5.98 million, with interest payments of USD 2.11 million, totaling USD 8.094 million. The document notes that this amount has been paid in Sri Lankan rupees rather than in foreign currency, while an equivalent level of domestic debt has been raised through treasury bills and securities. It further states that this mechanism has not resulted in a reduction of the country’s overall debt stock.
The statement adds that in the first three months of 2026, Sri Lanka’s foreign debt increased by USD 788 million, while domestic debt rose by Rs. 490 billion. It attributes part of this movement to ongoing borrowing and restructuring-related transactions.
On foreign debt settlements, the press release states that Sri Lanka paid USD 530 million in the first quarter of 2026 under debt restructuring arrangements. This included USD 234 million to multilateral institutions, USD 207 million to bilateral creditors, and USD 89 million to private creditors. It further notes that apart from this restructuring-related amount, no additional foreign debt or interest payments in dollars were made during the quarter.
The document states that Sri Lanka is scheduled to pay USD 2.7 billion to multilateral and bilateral creditors in 2026. It adds that USD 1.3 billion had already been paid by June 2026, with USD 1.4 billion remaining for the second half of the year.
The press release also highlights inflows and future disbursements, stating that Sri Lanka received USD 695 million from the International Monetary Fund, while USD 450 million is expected from the Asian Development Bank and USD 200 million from the World Bank. It also notes an additional USD 100 million in project loans. It further states that these inflows are tied to agreements linked to the debt restructuring program.
On domestic debt, the statement reports that Rs. 7.56 billion was paid in the first quarter of 2026, including Rs. 1.59 billion in interest and Rs. 5.975 billion in principal repayments. It adds that treasury bills and securities were rolled over by the Treasury to finance these repayments, resulting in no significant change in total debt levels from these transactions.
The press release further states that new domestic borrowing in the first quarter of 2026 amounted to Rs. 1,210 billion through treasury bills and Rs. 720 billion through treasury bonds, totaling Rs. 1,930 billion in new domestic debt. It also references additional foreign borrowing of nearly USD 1,500 million from multilateral institutions and foreign banks during the early part of the year.
According to the statement, Sri Lanka’s domestic debt stood at Rs. 18,883 billion at the end of 2024 and increased by Rs. 490 billion to Rs. 19,383 billion by March 31, 2026. It also notes that external debt rose from USD 36,680 million to USD 37,468 million over the same period.
The press release concludes by stating that while accounting practices under International Monetary Fund-related agreements convert rupee debt into dollar terms for reporting purposes, domestic and foreign debts should be assessed separately in their respective currencies, as conversion does not represent actual settlement between rupee and dollar obligations.
