Sri Lanka’s external debt falls slightly to USD 37.4 billion in Q1 2026

Sri Lanka’s total government external debt reached USD 37,468 million at the end of the first quarter of 2026, marking a nominal decrease of USD 195 million from the previous quarter.

The Public Debt Management Office released these figures in its March 2026 Statistical Debt Bulletin, which noted that the central government debt component within the total gross public debt stood at USD 98,965 million.

Multilateral debt continues to dominate the foreign debt architecture, accounting for 38% of the total external debt, followed closely by commercial debt at 34% and bilateral credit at 28%.

The official report stated that total government external debt stood at USD 37,468 million at the end of March 2026, reflecting a nominal decrease from the USD 37,663 million recorded at the end of the fourth quarter of 2025.

Approximately 81% of commercial debt comprises International Sovereign Bond issuances, with the remaining balance consisting of foreign currency term financing facilities.

The Asian Development Bank and the World Bank remain the primary multilateral lenders, representing over 82% of the total multilateral debt stock.

Within the bilateral segment, 59% is held by non-Paris Club nations, led heavily by China, while Paris Club countries account for 41%.

Sri Lanka made substantial structural progress in resolving its debt crisis following the public debt service moratorium declared in April 2022.

Following comprehensive bilateral restructuring agreements and an International Sovereign Bond exchange completed in late 2024, the government steadily institutionalised regular debt servicing to its external creditor partners.