In the budgetary allocations for the fiscal year of 2024, the Sri Lankan government has earmarked Rs. 3 trillion for the implementation of foreign debt restructuring and settlement of international sovereign bonds.

Delivering the 2024 Budget Speech in the parliament this afternoon, President Ranil Wickremesinghe spoke on the measures the island nation has taken to bounce back from the economic crisis.

Due to the space created by the debt restructuring process, the government was able to find resources for relief measures, the Head of State added.

He pointed out that under the debt restructuring supported by the International Monetary Fund (IMF), Sri Lanka’s public debt as a percentage of GDP is expected to go down from 128% in 2022 to 95% in 2032.

“After the completion of the debt restructuring process, the overall macroeconomic stability and the stability of the financial sector will be further strengthened. We have now been able to achieve significant progress in the debt restructuring process. Key aspects of domestic debt optimization are completed.

“As part of the restructuring of International Sovereign Bonds under the External Debt Restructuring process, Sri Lanka’s net debt is reduced to its present value. USD denominated new financial instruments should be issued to settle existing international sovereign bonds. Accordingly, for the settlement of existing International Sovereign Bonds, budgetary allocations are required to record the transaction in the government book of accounts.”