Sri Lanka should watch debt, contingent, liabilities: IMF

Tuesday, 26 February 2013 - 12:46


The International Monetary Fund said Sri Lanka should be careful about mounting external liabilities and reserve adequacy, with national debt already on the "high side" at over 80 percent of gross domestic product.

Sri Lanka's official debt to GDP ratio is expected to climb slightly to 81 percent in 2012 from 78.5 percent last year after the economy slowed following a balance of payments crisis triggered mainly by credit taken to subsidize energy tariffs.

The debt to GDP ratio is down from the nearly 100 percent levels seen a decade ago.