Sri Lanka bilateral, multilateral debt up in H1 2026; commercial down: Treasury

Sri Lanka government’s bilateral and multilateral loans increased in the first six months of this year while commercial debts fell, the latest official debt data showed.

Bilateral loans led by China rose 1.1 percent or US$119 million to US$10,797 million by the end of June, compared to US$10,678 at the end of last year, the data showed.

Multilateral loans also increased by 3.4 percent or US$488 million in the first half to US$14,802 million.

The government’s commercial debts, however, fell 2.1 percent or US$262 million in the first half of this year to US$12,409 million.

As of the end of June 2026, cumulatively, the total government external debt stood at US$ 38,008 million, reflecting an increase of US$345 million from US$ 37,663 million recorded at the end of December 2025.

The second quarter of 2026 saw an increase of US$540 million in government’s external debts, compared to a nominal decrease of US$195 million on the first quarter, the data showed.

Multilateral debt accounts for 38 percent of total government external debt, followed by commercial debt at 34 percent and bilateral debt at 28 percent.

Approximately 81 percent of commercial debt comprises International Sovereign Bond (ISB) issuances, with the remainder consisting of foreign currency term financing facilities.

The Asian Development Bank and the World Bank are the major multilateral creditors representing over 78 percent of the total multilateral debt. Under Bilateral debt, 59 percent represented by non-Paris Club countries while about 41 percent from Paris club countries. (Colombo/September 03/2026)