The increased payments put additional pressure on the country’s external financing position amid a sharp decline in loan disbursements, officials said on Monday.
The government paid US$1.35 billion in principal and interest on medium- to long-term loans (MLTs) during July-September of FY2026-27, according to provisional data from the Economic Relations Division (ERD).
The development partners disbursed $662.31 million in grants and loans over the same period.
The debt-servicing bill was approximately 2.04 times the amount of aid disbursed, leaving a gap of nearly $689 million between debt payments and incoming development assistance, the official data showed.
The figures highlight the growing importance of external debt repayments in…