Sri Lanka Reducing Reliance on Foreign Debt, Short Term Bills Sri Lanka has long struggled with its foreign debt burden, which has reached alarming levels and threatened the country's economic stability.
The island nation has taken on significant debt obligations in recent years to finance budget deficits and fund large scale development projects.
The Rise of Short Term Foreign Borrowing in Sri Lanka To manage its debt burden, Sri Lanka shifted towards short term foreign borrowing as a means of financing budget deficits.