Sri Lanka's interest payments on both foreign and domestic debt reached Rs. 1,559.7 billion during the first eight months of 2024, according to the Pre-Election Budgetary Position Report 2024 issued by the Ministry of Finance, Economic Development, and Tourism.
The report, released under Section 52 of the Public Financial Management Act, highlights a 2.2% increase in interest expenditures compared to Rs. 1,525.7 billion recorded in the same period of 2023.
Foreign debt interest payments saw a significant rise of 34.9%, amounting to Rs. 100 billion, compared to Rs. 74.1 billion last year. This increase is attributed to the commencement of repayments on some bilateral loans, as outlined in the report.
Meanwhile, domestic debt interest payments increased marginally by 0.6%, reaching Rs. 1,459.7 billion, up from Rs. 1,451.6 billion in the same period last year.