Sri Lanka’s total public debt stood at US$97.952 billion (Rs. 32.977 trillion) as of June 30, according to the latest report issued by the Public Debt Management Office (PDMO) of the Ministry of Finance.

The report, issued by the Public Debt Management Office states that as of June 30, the government’s debt alone amounted to Rs. 31.999 trillion, or US$95.047 billion.

In addition, the report records US$20 million in debt owed by provincial councils and provincial institutions, while US$2.885 billion represents debt of state-owned enterprises backed by government guarantees.

Domestic Debt at Rs. 19 Trillion

According to the report, the central government’s domestic debt stood at US$57.039 billion, or Rs. 19.203 trillion, at the end of June.

Of this amount, US$47.732 billion (Rs. 16.069 trillion) consisted of outstanding Treasury bonds, while outstanding Treasury bills amounted to US$7.045 billion (Rs. 2.372 trillion).

Foreign Debt Exceeds US$38 Billion

As of the end of June, the central government’s foreign debt stood at US$38.008 billion.

The report shows that government foreign debt increased from US$37.468 billion at the end of the first quarter of 2026 to US$38.008 billion at the end of the second quarter, an increase of US$540 million.

The foreign debt comprises US$14.802 billion in multilateral debt, US$12.409 billion in commercial debt, and US$10.797 billion in bilateral debt.

China Leads Among Bilateral Creditors

The report issued by the Public Debt Management Office further states that, among bilateral creditors, Sri Lanka had US$5.0067 billion in outstanding debt to China.

In addition, Sri Lanka owed US$2.2727 billion to Japan and US$853.9 million to India, according to the report.

Multilateral Debt

Among multilateral creditors, outstanding debt amounted to US$6.8851 billion to the Asian Development Bank (ADB), US$4.6662 billion to the World Bank, and US$2.6152 billion to the International Monetary Fund (IMF).

US$10 Billion Under International Sovereign Bonds

The report states that Sri Lanka’s external commercial debt amounted to US$12.4091 billion, of which US$10.0071 billion was under International Sovereign Bonds (ISBs).

A further US$2.402 billion in commercial debt is held under China-related Asian Development Bank term loan facilities. The report also notes that, following the debt restructuring carried out in 2024, the new sovereign bonds issued have maturity dates ranging from 2028 to 2038.

Rs. 2,698.6 Billion in Debt-Service Payments During the Second Quarter

The report further states that the government’s total debt-service payments during the second quarter of this year amounted to Rs. 2,698.6 billion.

Of this, Rs. 2,441.6 billion was paid toward domestic debt, including interest payments, while Rs. 257.0 billion was paid toward foreign debt.

When foreign debt payments are considered in US dollar terms, US$573.9 million was paid in principal and US$230.4 million in interest, bringing total external debt-service payments to US$804.3 million.

Debt Restructuring Has Not Yet Been Fully Completed

The report issued by the Public Debt Management Office also reveals several important developments regarding Sri Lanka’s debt restructuring process.

According to the report, Sri Lanka has completed several key steps in debt restructuring with the Official Creditor Committee, China Exim Bank, China Development Bank, and holders of International Sovereign Bonds.

It further states that the International Sovereign Bond exchange was completed in December 2024, with a participation rate of approximately 98%.

In addition, steps have been taken regarding bilateral restructuring arrangements with countries including Japan, India, France, Hungary, Saudi Arabia, the United Kingdom, Australia, Denmark, Belgium, and Germany. The report states that, under the relevant agreements, normal debt servicing has resumed to the respective creditor partners.

However, the report further notes that debt restructuring relating to debt servicing owed to 13 countries is still ongoing.