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Debt crisis will worsen next year - Sri Lanka's finance minister

Sri Lanka's finance minister, Mangala Samaraweera on Sunday warned the country's debt crisis is only set to get worse. 

"This crisis will further worsen next year," Samaraweera told journalists. 

"$ 4,285 million have to be paid in 2019 and of which $3,315 or 77% of the repayment are for the debt obtained during the tenure of the Rajapaksa regime." 

"Although this government was destined to shoulder such a heavy debt burden in 2015, it has been able to take steps to implement development activities at a fast pace than that of the Rajapaksa regime thereby assuring more direct benefits to the people," he said, adding that a heavy debt burden would continue going forward. 

"Another US $3,768 million will have to be paid as loan installments and the interest in 2020 and of which 77% or US $2,905 million is the debts that were borrowed before 2015," Samaraweera said.

"Only US $ 863 million have to be paid for the debt that was borrowed after 2015. In 2021, 83% of the foreign debt installments will have to be paid to repay the debt taken before 2015."

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