Sri Lanka on track to reach a 95 percent Debt to GDP target
- CNL Reporter
- July 2, 2025
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- GDP
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Sri Lanka is on track to reach a 95 percent debt to gross domestic product target two years earlier than originally envisaged by the International Monetary Fund, based on the latest projections, Deputy Minister of Economic Development, Anil Jayantha Fernando said.
In a debt sustainability analysis after Sri Lanka’s first external default without war, the IMF expected the island to hike taxes on the people and bring debt to GDP down to 95 percent by 2032.
But their latest projection indicates that the target would be reached by 2030, two years ahead of schedule, Minister Fernando said.
Sri Lanka’s new administration has been careful not to rock the boat and maintained fiscal measures envisaged in the IMF program. Sri Lanka’s debt to GDP ratio is expected to reach 94.5 percent by 2030, according to the latest IMF projections, a Fiscal Strategy Statement said
