Sri Lanka is one of the most indebted countries in the global south and its debt stock doubled between 2000 and 2012 to US$22.66 billion. The debt was first created in the late 1970s and has grown rapidly. Now an estimated 25% of government revenue is spent on debt repayments and the IMF estimates that under financial stress, payments could reach 35% of national income in 2013. The government of Sri Lanka spends nearly the same amount on debt repayments as it does on healthcare, recently borrowing a further US$600 million just to cover the repayments and escalating interest. The deeply indebted country has not been considered for any debt relief as international institutions deem its debt to be ‘sustainable’.
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