Since taking office, President Anura Kumara Dissanayake has reportedly secured a staggering loan of 347.5 billion rupees from the local market, according to Professor Aminda Methsila. This influx of borrowing reflects a sustained high demand for treasury bills and bonds, driven by market confidence that the new administration will maintain its commitment to the International Monetary Fund (IMF).
Despite this optimism, Professor Methsila warns that the nation’s economy continues to face significant challenges, primarily due to the escalating levels of debt. He highlighted that the IMF’s initial consensus emphasizes the importance of debt sustainability, underscoring the critical need for responsible fiscal management.
In addition to the previously secured loans, the new government is set to issue treasury bonds totaling 95 billion rupees today, as part of its ongoing financial strategy. This move indicates a continued effort to stabilize the economy while addressing the pressing issue of debt accumulation.
