Public Debt Increases in Dollar Value While Decreasing in Rupee Value

Abstract

According to recent data published by the Ministry of Finance, public debt in dollar terms fell from USD 97 Bn (end 2021) to USD 85 Bn (end 2022), however rose again to USD 91 Bn by September 2023.

The debt stock in rupee terms was inverse, it grew from LKR 20 Tn (end 2021) to LKR 31 Tn (end 2022) but reduced to LKR 30 Tn in September 2023.

Some of this movement in the debt stock value can be explained with the movement in exchange rate. As the currency depreciated in 2022 and appreciated in 2023.