Semasinghe says SL’s debt repayment higher than borrowing in 1H

Monday, 22 July 2024 01:19 - - {{hitsCtrl.values.hits}}

State Minister of Finance Shehan Semasinghe

State Minister of Finance Shehan Semasinghe yesterday announced that the Government successfully paid off a debt of Rs. 129 billion in the first six months of 2024.

The repayment surpasses the amount of debt acquired through Treasury Bonds and Treasury Bills during the same period.

According to him, between January and June 2024, the Government obtained a total of Rs. 4,852 billion in debt through these financial instruments. However, it managed to repay Rs. 4,981 billion, demonstrating a commitment to fiscal responsibility.

Semasinghe stressed that public focus often lies on the debt incurred, but it is crucial to recognise the Government’s efforts in repaying these loans and net borrowing.

He highlighted that, prior to the economic crisis, the Central Bank had the ability to print money as required, which led to an inflation rate as high as 70%.

The State Minister noted that with the implementation of the reform program and the passage of the new Central Bank Act, the Government’s approach to managing debt has changed significantly.

“The Government now operates more like a business, balancing borrowing and repayment to maintain economic stability,” he added.

He said the shift in financial strategy aims to prevent further inflation and promote sustainable economic growth.