18/09/2024
During Prime Minister Ranil Wickremesinghe's governance from 2015 to 2019, Sri Lanka borrowed approximately US$ 12,050 million in foreign loans. The primary source of these loans was through International Sovereign Bonds (ISBs), which were issued to manage the country's funding requirements and support its foreign reserves. Despite the substantial borrowing, the economy did not experience significant growth; GDP increased only slightly from US$ 79.4 billion in 2014 to US$ 84 billion in 2019, and per capita income saw minimal growth as well🥲🥹.
In addition to ISBs, Sri Lanka also received financial assistance from various countries. Notably, India extended credit lines during this period, including a US$ 1 billion credit line for essential imports and an additional US$ 500 million for fuel purchases.
Overall, the period was marked by significant borrowing aimed at addressing fiscal needs but resulted in mounting debt without corresponding economic improvement.
