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Govt debt rises to 115.2-pct of GDP by end 2022

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ECONOMYNEXT –The government debt has risen to 115.2 percent of gross domestic product by end 2022 from 104.5 percent a year earlier based on the latest national account estimates by the island’s statistics office.

Sri Lanka’s central bank’s gross debt was about 4.66 percent of gross domestic product. The central bank has also spent special drawing rights, on which it has to pay interest.

However, the central bank holds government rupee Treasury bills which can be sold for dollars to rebuild reserves and repay the external debt as long as domestic credit is moderate and forex problems are not re-started under flexible inflation targeting, as credit recovers.The government was also responsible for another 5.62 percent of guaranteed debt in state enterprises, taking the total to 125.7 percent of GDP.

Sri Lanka’s nominal GDP exploded 16.8 trillion rupees in 2021 to 24.1 trillion rupees in 2022 in a classic Latin America style ‘inflationary blow off’ boosting nominal tax revenues and reducing the rupee debt to GDP ratio.

Central government rupee debt fell from 66 percent in 2021 to 55 percent in 2022 as a result, in a High Inflation and Financial Repression (IFR) haircut, despite new debt being raised to cover deficits.Sri Lanka’s domestic interest rates are around 20 to 30 percent amid fears of a domestic debt re-structure as there is no cut-off date for domestic debt re-structure under the IMF debt resolution framework.

Remarkably, domestic creditors are expected to keep financing the government as ‘senior creditors’ despite the threat of default.Central government foreign debt meanwhile rose from 39 percent to 61 percent of GDP as the rupee fell, despite most new disbursements being halted.

The other so-called senior creditors like the World Bank and ADB, whose debt is not re-structured, redirected approved loans to help urgent and humanitarian needs during 2022.The US, Japan and several European countries, China and India gave grants which will not add to debt.

Sri Lanka’s rupee appreciated in March 2022 amid a moderation in domestic credit and consumption, but fell back amid an ad hoc peg where central bank purchases appeared to have exceeded the excess dollars available from credit developments.When year-end debt is valued at 337 to the US dollar, the spot market value on March 16, government, government guaranteed debt was 118.7 percent of GDP with central bank’s foreign debt also counted.



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UN Humanitarian Priorities Plan (HPP) for Cyclone Ditwah successfully concluded

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The conclusion of the Humanitarian Priorities Plan (HPP) implemented by the United Nations for those affected by Cyclone Ditwah was marked at a ceremony held in Colombo this morning (11), under the patronage of Commissioner General of Essential Services and Chief of Staff to the President, Prabath Chandrakeerthi, and United Nations Resident Coordinator in Sri Lanka, Marc-André Franche.

Speaking at the event, UN Resident Coordinator Marc-André Franche noted that the humanitarian relief programme launched for those affected by Cyclone Ditwah had been successfully implemented owing to the strong political leadership and the swift response demonstrated in managing the disaster situation.

Commissioner General of Essential Services and Chief of Staff to the President Prabath Chandrakeerthi emphasized that Sri Lanka had demonstrated how strong national leadership and effective partnerships could ensure the delivery of relief to affected communities in a fair and efficient manner during times of crisis. He further stated that the timely and accurate data and assessments provided by the United Nations had played a crucial role in facilitating rapid relief efforts. He also noted that the Government is continuing its efforts to strengthen multi-hazard early warning systems to enhance resilience against future natural disasters of a similar nature and to further expand institutional coordination at national, provincial and local levels.

Expressing appreciation and gratitude for the generous and prompt assistance extended by various countries and partners, the Commissioner General also commended the contribution of all state institutions that helped ensure the uninterrupted provision of essential services and facilitated the swift delivery of relief assistance.

Under the United Nations’ Humanitarian Priorities Plan for Cyclone Ditwah, a fundraising initiative was launched to mobilise US$35.4 million for those affected by the disaster. Of this amount, 75 per cent has already been disbursed as assistance to affected communities across the country. Through the programme, each affected family received an allowance of Rs. 27,000 through Divisional Secretariats, while a range of additional relief measures, including the construction of temporary housing, were also implemented.

The Humanitarian Priorities Plan covered 25 districts and delivered assistance through nine key sectors. Official reports indicate that 87 per cent of the targeted population of more than 650,000 people, equivalent to approximately 575,000 individuals, directly benefited from the programme. This achievement clearly reflects the confidence and support extended by foreign governments and organisations towards the Cyclone Ditwah response programme being implemented by the present Government.

Among those who attended the event were Additional Secretary (Disaster Management) to the Ministry of Defence K. G. Dharmatilake, ambassadors and high commissioners from several countries, representatives of the United Nations Development Programme (UNDP), representatives of the World Health Organization (WHO), representatives of international humanitarian organisations, and a number of local and international dignitaries.

(PMD)

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President chairs discussion on potential El Niño impacts and institutional preparedness

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A discussion to review the potential impacts of the anticipated El Niño phenomenon and the preparedness plans of relevant institutions to address its effects was held this morning (11) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake.

The meeting was attended by representatives of the Department of Meteorology, the Department of Irrigation, the Central Environmental Authority, Mahaweli Authority of Sri Lanka, the Disaster Management Centre, Vidulijanana Lanka (Pvt) Ltd and the National System Operator (Pvt) Ltd, among other relevant institutions.

Extensive discussions were held on the possible impact of the anticipated El Niño conditions on the country’s food security, drinking water supply and energy sector, as well as the immediate measures required to effectively manage these sectors.

Particular attention was given to current reservoir water levels and the measures required managing potential pressure on agriculture, drinking water supply and energy generation. Officials also briefed the President on the preparedness plans already in place to mitigate any adverse effects.

Officials noted that the expected El Niño conditions are likely to resemble those experienced during 2016–2017. They further stated that water management plans have been formulated accordingly and that steps have already been taken to commence the 2026 Yala season approximately one and a half months earlier than usual.

Special attention was also focused on ensuring an uninterrupted electricity supply over the upcoming months, maintaining agricultural activities and safeguarding food security. The President instructed relevant officials to prepare and submit detailed plans to ensure adequate electricity generation, the provision of water required for the forthcoming cultivation season and the protection of drinking water resources.

President Dissanayake observed that, just as Sri Lanka had successfully managed challenges arising from Cyclone Ditwah and the conflict situation in the Middle East, the country possesses the capacity to effectively address this global challenge as well. The President expressed confidence that with proper planning and timely implementation, Sri Lanka would be well positioned to respond to any eventuality.

Among those present were Secretary to the President Dr. Nandika Sanath Kumanayake, Senior Additional Secretary to the President Kapila Janaka Bandara, Director General of the Department of Meteorology A. L. K. Wijemannage, Director General of the Department of Irrigation Kithsiri Weligopolage, Director General of the Mahaweli Authority of Sri Lanka H. M. K. K. Herath, Chairman of the Central Environmental Authority Professor Tilak Hewawasam, Acting Director General of the Disaster Management Centre Brigadier D. D. G. A. Jayawardena and several senior officials representing the relevant institutions.

 (PMD)

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New Sasakawa Memorial Sri Lanka–Japan Cultural Centre reflects enduring friendship between Sri Lanka and Japan – PM

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Prime Minister Dr. Harini Amarasuriya participated at the ceremonial opening of the new Sasakawa Memorial Sri Lanka–Japan Cultural Centre today [11th of June 2026].

The cultural centre, commissioned by the Sasakawa Memorial Sri Lanka–Japan Cultural Centre Trust and situated at No. 85, Ward Place, Colombo 07, is a landmark development designed to promote cultural exchange, education, professional training and bilateral cooperation between Sri Lanka and Japan.

The New Sasakawa Centre was ceremonially opened  by the Ambassador of Japan to Sri Lanka Akio ISOMATA, Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Minister of Buddhasasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, Yohei SASAKAWA,  Chairman of The Nippon Foundation, Japan, Premalal Fernando, Chairman, Sasakawa Centre Trust. The Prime Minister unveiled the inaugural plaque.

Following the occasion Memorandum of Understanding was signed between the Ministry of Defence and Sasakawa Peace Foundation in the presence of Prime Minister Dr. Harini Amarasuriya and  Yohei SASAKAWA, Honorary Chairman.

Addressing the occasion, Prime Minister Dr. Harini Amarasuriya stated, that the friendship between Sri Lanka and Japan is enriched by a long history of cultural and spiritual connections and that the societies are connected through a deep appreciation of nature, culture, learning, and community.

Highlighting the longstanding contribution of the Sasakawa Centre, the Prime Minister stated that it has played an invaluable role in promoting Japanese language education and strengthening mutual understanding between the people of Sri Lanka and Japan. She expressed confidence that the new Centre would emerge as a dynamic platform for cultural exchange, educational cooperation, and meaningful people-to-people engagement.

The Prime Minister stated that, at a time of increasing global uncertainty, partnerships based on mutual respect, shared values, and a commitment to peace are more important than ever. She reaffirmed that Sri Lanka and Japan remain committed to dialogue, international cooperation, and s rules-based international order that promotes peace, prosperity, and human dignity.

The occasion was attended by the Ambassador of Japan to Sri Lanka  Akio ISOMATA, Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Minister of Buddhasasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, Yohei SASAKAWA, Chairman, The Nippon Foundation, Japan, Premalal Fernando, Chairman, Sasakawa Centre Trust and Diplomatic core, distinguished guests.

[Prime Minister’s Media Division]

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