According to the latest official debt statistics, the Sri Lankan government experienced an uptick in both bilateral and multilateral loans during the first half of this year, while commercial debts saw a decline.

Bilateral loans, primarily from China, increased by 1.1 percent, amounting to an additional US$119 million, bringing the total to US$10,797 million by the end of June. This marks a rise from the US$10,678 million recorded at the close of the previous year.

Similarly, multilateral loans rose by 3.4 percent, or US$488 million, reaching a total of US$14,802 million during the first half of the year.

In contrast, the government’s commercial debts decreased by 2.1 percent, equivalent to a reduction of US$262 million, resulting in a total of US$12,409 million by mid-2026.

As of June 30, 2026, the cumulative external debt of the government stood at US$38,008 million, reflecting an increase of US$345 million from US$37,663 million at the end of December 2025.

The second quarter of 2026 recorded a rise of US$540 million in external debts, in contrast to a nominal decline of US$195 million observed in the first quarter.

Multilateral debt comprises 38 percent of the total external debt, while commercial debt accounts for 34 percent, and bilateral debt constitutes 28 percent.

Notably, about 81 percent of the commercial debt is made up of International Sovereign Bond (ISB) issuances, with the remainder derived from foreign currency term financing facilities.

The Asian Development Bank and the World Bank are the predominant multilateral creditors, collectively representing over 78 percent of the total multilateral debt. In the context of bilateral debt, 59 percent is attributed to non-Paris Club countries, while approximately 41 percent is from Paris Club nations.

(Colombo/September 03/2026)