A newly released report from the Sri Lanka Department of Census and Statistics reveals that 54.9% of households in the country experienced indebtedness in 2023, as Sri Lanka worked to recover from its most severe economic crisis in recent history. The Household Survey on Impact of Economic Crisis – 2023 highlights the extent and reasons for widespread household debt across the nation.
| Category | Percentage / Insight |
|---|---|
| Households in debt | 54.9% |
| Main reason for debt | Settling mortgages (31%) |
| Coping strategy reported | Borrowing or seeking help for food/money |
| Loans taken for daily food needs | 22.3% |
| Loans for house construction/repairs | 17% |
| Loans to repay previous debts | 11.9% |
| Loans for land/housing/vehicles | 9.9% |
| Loans for health expenses | 9.9% |
| Loans due to bank accounts | 21.9% |
| Borrowing from money lenders | 9.7% |
| Borrowing from microfinance institutions | 8.7% |
| Borrowing from Samurdhi Bank | 7.1% |
| Borrowing from place of work | 5.2% |
| Credit card debt | 1.8% |
| Private credit disbursed by banks (Dec 2023) | Rs. 97.5 billion |
| Government debt (2023) | Rs. 29,150 million (+6.47% YoY) |
| Per capita debt | Rs. 1.32 million |
| Govt. debt-to-GDP ratio (Q4 2023) | 105.45% |