The Central Bank of Sri Lanka (CBSL) has issued a statement in response to a report on a local newspaper claiming that Sri Lanka is planning to delay the payment of loans.

Issuing a statement, the CBSL said it has observed, with disappointment, that a certain newspaper has published an erroneous and unsubstantiated report in this regard today.

The news report claims there is a planned delay in settlement of dues on account of Sri Lanka Development Bonds (SLDBs) and Foreign Currency Loans obtained by the Government from Domestic Banks.

The CBSL said it wishes to inform investors and the general public that debt service payments, interest and capital, are being met in a timely manner on account of SLDBs and Foreign Currency Loans from Domestic Banks, as well as all other debt obligations of the Government.

“There is no plan to delay or defer such payments as reported in the said newspaper, and accordingly, the newspaper report is completely erroneous with no basis for the contents reported,” it said.

The Bank insisted that the Government has no intention to tarnish its unblemished debt service record by delaying the settlement of maturing debt obligations.

So far, during 2021, on account of SLDBs and Foreign Currency Loans from Domestic Banks, debt service payments of close to United States Dollars 1,200 million have been met, and all due obligations will also be serviced in a timely manner, it said.

The Central Bank of Sri Lanka further said investors and the general public are advised not to get unduly concerned about such baseless and erroneous newspaper reports.