"The central government debt to GDP ratio increased to 86.8 per cent at end 2019 from 83.7 per cent at end 2018, reflecting the impact of higher net borrowings to finance the enlarged budget deficit, while the relatively low nominal GDP also contributed to increase the debt to GDP ratio.

The relative share of domestic debt in the total outstanding debt rose marginally to 50.9 per cent at end 2019 from 50.5 per cent at end 2018, reflecting the increased dependence on domestic sources to finance the budget deficit during the year.

The outstanding debt of the central government owed to the domestic banking sector increased by 16.5 per cent to Rs. 2,739.5 billion as at end 2019, reflecting a significant increase in the outstanding debt held by both the Central Bank and commercial banks.

The foreign currency denominated domestic debt increased to Rs. 728.2 billion (US dollars 4,009.4 million) at end 2019 from Rs. 714.7 billion (US dollars 3,911.0 million) at end 2018.

The total outstanding foreign debt in rupee terms increased by 7.4 per cent to Rs. 6,402.4 billion at end 2019, while the relative share of foreign debt in the total debt stock declined marginally to 49.1 per cent at end 2019 from 49.5 per cent at end 2018.

The rupee value of outstanding debt increased by Rs. 12.4 billion due to the impact of the exchange rate variation at end 2019.

Total debt service payments in 2019 amounted to Rs. 2,022.5 billion, recording a decline of 3.2 per cent in comparison to Rs. 2,088.6 billion in 2018, reflecting the decline in amortisation payments on domestic debt during the year.

Most debt service payments related indicators showed an improvement in 2019, while certain indicators such as the ratio of debt service payments to government revenue, remained a concern."

Source: Annual Report (2019) | Central Bank of Sri Lanka