Where did debt borrowed under new NPP Government go?

Monday, 4 November 2024 03:42 - - {{hitsCtrl.values.hits}}

Prof. Anil Jayantha claimed that the majority of debt borrowed (86%) between 27 September and 15 October was used to service existing debt obligations.

Between 27 September and 15 October, the Government raised Rs. 461.5 billion through three Treasury bill auctions and an additional Treasury bond. This closely aligns with the

Rs. 465.1 billion figure cited by Prof. Jayantha.

Debt servicing during this period included Rs. 390.9 billion for maturing Treasury bills and Rs. 22 billion in bond coupon payments, totalling Rs. 412.9 billion. This means around 89% of the new debt issued was allocated to debt servicing, which is close to the figure quoted by the professor.

In sum, although there are slight differences in the exact numbers, the professor’s overall claim – that over 85% of the debt issued was for debt servicing – is correct.

Therefore, we classify the statement as TRUE.

(Source: https://factcheck.lk/factcheck/prof-jayantha-explains-govt-borrowing/)