Sri Lanka manages domestic debt risks and eco-labelling initiatives

Sri Lanka is navigating two distinct economic developments involving debt management and environmental policy. According to the first Annual Report of the Public Debt Management Office (PDMO), the country has successfully reduced immediate pressure from external debt repayments through restructuring. However, a significant refinancing risk has emerged domestically. At the end of 2025, 24.3% of domestic debt was due within one year, compared to only 1.5% of external debt. While the average maturity of total government debt improved to 6.8 years, the domestic debt profile remains much shorter at 4.7 years versus 9.6 years for external debt.

In parallel, over 50 leaders have convened to strengthen Sri Lanka’s National Eco-Labelling Framework (NELF). This initiative, supported by the European Union’s Green Recovery Facility and implemented by Expertise France in collaboration with the Ministry of Environment, aims to establish a trusted system for sustainable products. The framework is intended to bolster technical standards and market mechanisms, helping Sri Lankan businesses access global markets by providing credible environmental certifications for consumers.