A stark warning in Parliament revealed that Sri Lanka’s debt burden has surged by 300 billion rupees in only seven days raising urgent concerns about currency instability, rising electricity costs and the country’s long term investment climate.
MP Ravi Karunanayake issued a strong alert during the budget debate, stating that the national debt had expanded by an alarming 300 billion rupees within a single week. He said this jump reflects the severe pressure caused by the weakening rupee and the rising cost of opening Letters of Credit, which directly impacts national borrowing and foreign exchange outflows.
Karunanayake highlighted the rapid growth expected in national electricity demand. By 2025 the country is projected to require 16,500 gigawatts. By 2030 the figure is expected to rise to 24,000, and by 2050 demand may reach 45,000 gigawatts. He said Sri Lanka must urgently plan for this expanding energy requirement and understand how increasing national debt and currency depreciation could obstruct future investments.
He pointed out that on the day the budget was delivered, the dollar stood at 300 rupees. However, at the time of his speech, the dollar had risen to about 312 when attempting to open an LC. This increase, he argued, directly contributes to the sharp rise in debt and threatens the stability of domestic financial planning.
Karunanayake also warned that Sri Lanka’s high electricity unit price is placing additional pressure on businesses and households. He compared Sri Lanka’s 24 to 25 rupees per unit to the significantly lower costs in the region. India, Pakistan and Bangladesh maintain unit prices between 16 and 20 rupees, while Thailand and Malaysia average around 22. He described Sri Lanka’s prices as uncompetitive and linked them to broader economic challenges.
His remarks emphasize the importance of strengthening the rupee, stabilising energy costs and reducing the burden of external borrowing to safeguard long term national development and economic confidence.
