No more foreign loans for infrastructure projects - Cabinet

RI | Published: 10:24 AM Jan 12 2021
Local No more foreign loans for infrastructure projects - Cabinet

During the Cabinet media briefing today it was revealed that Sri Lanka's debt repayments for 2021 stand at $6.865bn.

Prime Minister Mahinda Rajapaksa in his capacity as the minister of finance had informed the cabinet in this regard.  

Of the total repayments to be made this year $ 5351mn will be allocated for loan installments while $ 1514mn will be interest payments. Minister Udaya Gammanpila speaking to the media noted that Sri Lanka paid a similar amount in 2020 as well.  

According to the Minister the Government has received approval to obtain loans amounting to Rs 2997bn in 2021, he noted that a majority of the loans will be obtained from local sources as the Government has made a decision to cut down on the amount of money obtained from foreign sources. 

The Government has also taken a decision not to obtain foreign loans for large scale development projects, the minister noted that moving forward large scale infrastructure development projects will be based on Public-Private partnerships and that they would use the Build-Operate-Own-Transfer model.

RI | Published: 10:24 AM Jan 12 2021

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