Sri Lanka’s debt repayments exceed revenue – Sunday Times
The servicing of public debt soaked up all of Sri Lankan government revenue in 2013, The Sunday Times reported.
That the government is having to borrow to meet its debt repayments is itself increasing the debt burden – even as state revenue is falling, the paper said.
Sri Lanka’s much-vaunted growth in GDP “has been achieved by increasing foreign and domestic debt and cutting developmental expenditure [and thus by] undermining macroeconomic fundamentals,” the paper warned.
Foreign direct investment (FDI) in 2013 fell from the year before to US$ 916 million, mostly in hotels, the paper also said.
