The depreciation of the Sri Lankan rupee against the US dollar resulted in an additional Rs. 48 billion being incurred for foreign debt repayments in 2025, it was revealed during a meeting of the Committee on Public Finance (COPF).
The disclosure was made when officials from the Ministry of Finance appeared before the committee.
During the meeting, COPF Chairman Dr. Harsha de Silva inquired about the exact additional amount spent on foreign debt servicing last year due to the depreciation of the rupee.
Responding to the question, Udeni Thilakaratne, Additional Director General of the Public Debt Management Office at the Ministry of Finance, stated:
"It is approximately Rs. 48 billion. This calculation is based on the fact that we repaid around USD 2.4 billion, with an exchange rate difference of Rs. 20 per US dollar. Therefore, multiplying 2.4 billion by Rs. 20 results in an additional cost of approximately Rs. 48 billion. Consequently, an extra expenditure of Rs. 48 billion in rupee terms was incurred in 2025."
Meanwhile, Dr. Harsha de Silva also raised questions regarding an additional USD 600 million required for foreign debt servicing in 2025.
Although Thilakaratne provided an oral explanation, the committee chairman instructed officials to submit a detailed report on the matter as soon as possible.
