RISING FOREIGN EXPOSURE

Sri Lanka’s foreign financing commitments have gradually increased during the period from 2006 to 2012 at an annual average rate of 19 percent, with China accounting for the majority of loans in 2012, the annual report (2012) of Sri Lanka’s Finance Ministry showed.

According to the report, the total value of the foreign loans and grants obtained by Sri Lanka in 2012 was US $ 3.15 billion, of which project loans accounted for US $ 2.78 billion and grant assistance accounted for US $ 363 million.Out of the total commitments during 2012, 33 percent was made by China while another 22 percent was from India, 17 percent from Japan, 11 percent from the World Bank, 3 percent each from the Asian Development Bank (ADB) and Netherlands.

The remaining 14 percent of the total commitments was received from other development partners and lending agencies.

Of the total foreign financing commitments in 2012, 71 percent amounting to US$ 2.2 billion was earmarked for development of economic infrastructure mainly ports & shipping (26 percent), roads and bridges (22 percent), power & energy (11 percent) and air transport (11 percent).

Meanwhile, the total external debt as at the end of 2012 was US$ 20.3 billion—US $ 13.6 billion (68%) as concessional and US $ 6.7 billion (32%) as nonconcessional.