Sri Lanka, Feb. 12 -- In December 2023, the net credit extended to the government by the banking system surged by more than half a trillion rupees, while credit to public corporations plummeted by over Rs. 350.0 billion.
This shift occurred as the government assumed the remaining outstanding foreign currency guaranteed debt of the Ceylon Petroleum Corporation (CPC), complying with conditions set by the International Monetary Fund (IMF) to restructure the balance sheets of certain state-owned enterprises.
According to the data made available by the Central Bank, it was seen that the net credit to the government rose sharply by Rs.563.0 billion in December alone to a total outstanding government debt of Rs.8,285.0 billion by the end of last...