Sri Lanka’s debt situation is so severe, over 95% of all government revenue is spent on repaying loans, reports Forbes this week.
In a piece examining the government’s struggle to make repayments, Wade Shepard wrote in Forbes:
“Sri Lanka’s debt situation is severe. The country is currently in $58.3 billion deep to foreign financiers, and 95.4% of all government revenue is currently going towards paying back its loans.
This means that out of every hundred dollars the government brings in only $4.60 is going towards essentials like education and public services.”
See more in his piece: China Tells Sri Lanka: We Want Our Money, Not Your Empty Airport
Commenting on the figures, senior lecturer of Wayamba University of Sri Lanka Dr Aminda Methsila Perera said that the government was “stuck in a serious debt trap”.
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