As per a report published on Sri Lanka by HSBC Global Research, the expected GDP growth of Sri Lanka in 2021 will be 3.5% due to the effect of recurring waves of Covid-19. According to HSBC Global Research, Sri Lanka’s external profile is particularly concerning. Regardless of this development, Sri Lanka still owes over $ 4 billion in foreign debt per year over the next five years. The Government is making ad hoc arrangements such as bilateral swaps and small ticket loans to service the said foreign debt. Further, in terms of external debt payment, HSBC stated that an IMF programme could help Sri Lanka.

Source: The Nation October 07, 2021 18:45 UTC