Press briefing of Cabinet Decision taken on 2023-02-20

Financing the Budget for the year 2023

- The Appropriation Act, No.43 of 2022 has authorized a gross borrowing limit of Rs.4,979 billion for the year 2023. Accordingly, it should be utilized for the debt repayment, interest payments and financing of development projects in this year. The total gross borrowings of Rs.4,979 billion will be secured from domestic and foreign sources and it has been estimated to obtain Rs.3,526 billion from local sources and Rs.1,453 billion from foreign sources. Necessary borrowings will be secured through Treasury Bills, Treasury Bonds and Foreign Currency Banking Unit Loans and Sri Lanka Development Bonds under the domestic sources. Adhering to the policy declared by the Government of Sri Lanka in April 2022 pertaining to the interim external debt servicing, the total debt service payments to be made in foreign currency within the first six (06) months in the year 2023 has been estimated as US$ 2,609 million. Out of which US$ 2,069 will be for repayment of foreign debt and US$ 540 million will be for the payment of interest. Further, debt service payments made in foreign currencies includes Sri Lanka Development Bonds of US$ 709 and US$ 46 as their interest. Accordingly, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to authorize the Secretary to the Treasury to take necessary action to secure necessary provisions within the approved borrowing limit, was approved by the Cabinet.