About this work
Sri Lanka’s debt outlook in October 2020 depended on reversing the fiscal effect of earlier tax changes, but the more immediate vulnerability was external financing. Jonathan Fortun, Yuanliu Hu and Sergi Lanau examined the difficulty of meeting borrowing needs without international bond issuance. Official lending could bridge the gap if provided early, although the authors considered that support unlikely without a strong IMF program.
Abstract
Sri Lanka’s debt outlook in October 2020 depended on reversing the fiscal effect of earlier tax changes, but the more immediate vulnerability was external financing. Jonathan Fortun, Yuanliu Hu and Sergi Lanau examined the difficulty of meeting borrowing needs without international bond issuance. Official lending could bridge the gap if provided early, although the authors considered that support unlikely without a strong IMF program.
Cite this work
Jonathan Fortun, Yuanliu Hu, Sergi Lanau (2020). Economic Views: Debt Sustainability in Sri Lanka. Institute of International Finance.