Sri Lanka News Updates with Discussions

The current balance of payments difficulties owing to the growing large trade deficit are being financed by further foreign borrowing mostly commercial loans. Furthermore, additional borrowing is needed as there is a large repayment of debt and debt servicing costs in the coming months and foreign reserves are inadequate. The large foreign borrowing is a tacit admission that the net reserves position is weak, that there would be a balance of payments deficit and that the debt service payments this year are a strain on the reserves.

One of your senior mister's wife is visiting Singapore now (BTW you know who). Any luck with carrying their shopping bags?

But nothing could help to get the deals to you......hiks.....

The growing foreign debt is a serious economic concern. Foreign debt increased significantly in the last decade. The increase in foreign debt is particularly sharp since 2008. Between 2008 and 2009 foreign debt increased by 10 percent between 2009 and 2010 by 14.4 and it increased by a further 14.5 percent last year. By the end of 2009 foreign debt had more than doubled what it was in 2000 to reach US$ 18 billion.

In 2010 it reached US$ 21.4 billion and at the end of last year it had ballooned to US$ 24.5 billion. The large borrowings this year is likely to result in the foreign debt reaching around US$ 27 billion.

The large increase in the country s foreign debt in recent years and increasing foreign debt servicing costs is a serious concern. The Ministry of Finance and Planning estimates Sri Lanka s foreign debt servicing costs comprising both principal and interest payments for 2010 at US$ 810 million.

The debt service payments was expected to be US$ 954.5 million in 2011 and expected to nearly double in 2012 to an estimated US$ 1,539.4 million. The sharp increases in debt servicing costs are due to increased borrowing in recent years, especially those since 2009.

hak!hak! 69 with Damed on the bed!

You are absolutely correct

I am happy at least you are getting your tip today for shopping bags