By Sri Lanka’s government will spend an extra 231.5 billion rupees to reduce debt owed by state-owned companies and repay a loan from India.
The extra spending will be divided between two state-owned companies: the Ceylon Electricity Board will receive 129 billion rupees and SriLankan Airlines will receive 102 billion rupees.
The two companies will use the money to repay the debt they owe to the Ceylon Petroleum Corporation. The CPC will then use the money to repay loans it has taken out from the government using a credit line from India.
Finally, the government will use the money to repay the Indian credit line that was used to import oil.
In simple terms, Sri Lanka’s government is borrowing money from its citizens to pay off debts that state-owned companies owe to each other. The government will then use the money to repay a loan from India that was used to import oil.
