The Ministry of Finance Annual Report for 2019 outlining the 2020 fiscal operations reported that during the first quarter of 2020, the total expenditure incurred amounted to Rs. 1,229 billion comprising recurrent expenditure amounting to Rs. 715 billion and capital expenditure amounting to Rs. 150 billion, including the spillover from 2019, with Rs. 360 billion allocated for the loan repayment. “The Government has already taken a decision to re-examine its debt financed public investment pipeline amounting to almost $ 9 billion and re-profile it by advancing urgent projects, cancelling those that will not generate an adequate return financially or economically, while differing certain projects that need to be undertaken later,” Treasury Secretary S.R. Attygalle noted. The estimated government revenue for this period is Rs. 420 billion. The total outstanding central government debt stock increased to 86.8% of GDP (Rs. 13,031 billion) at the end of 2019, compared to 83.7% of GDP (Rs. 12,030 billion) in 2018. However, the exposure to the foreign currency in the total debt stock remains a concern, which was 42.6%. Foreign funding has been the main source of support for large infrastructure projects such as expressways, seas and airports, and electricity and water projects undertaken by the Government over the last five decades. However, due to domestic and foreign economic and market conditions, shrinkage in accessing concessional financing with an increased per capita income level, and to fulfil government fiscal targets, the Government has taken steps to extend the foreign financing source towards the capital market over the last decade, while maintaining the support of traditional Official Development Assistance (ODA) and accessing new development partners such as the Asian Infrastructure Investment Bank (AIIB). The Government made arrangements to mobilise foreign financing of $ 3,378.8 million by entering into 41 agreements with foreign development partners and lending agencies from 1 January to 31 December 2019, to support the public investment programme. This consists of $ 3,312.5 million in the form of loans obtained as ODA and $ 66.3 million by way of ODA grants and technical assistance. China leads the ODA commitments during this period amounting to $ 1,061.7 million, followed by the Asian Development Bank ($ 765 million), the World Bank ($ 421.8 million), Japan ($ 282.2 million), AIIB ($ 280 million), then UK ($ 143.9 million), Netherlands ($ 128.2 million), France ($ 84.9 million), Hungary ($ 58 million), the Saudi Fund ($ 50 million), the European Community ($ 43.9 million), the Organisation of the Petroleum Exporting Countries (OPEC) Fund ($ 40 million), Austria ($ 10.3 million), Korea ($ 6 million), Germany ($ 2.3 million), and the UN Agencies ($ 0.6 million). Commitments arranged for the road and bridges sector was the highest among all sectors which amounted to $ 1,301 million (39%) followed mainly by the transport sector ($ 731 million), health and social welfare ($ 345 million), and housing and urban development ($ 335 million). In addition to the funds raised from ODA development partners, $ 4,400 million was raised through International Sovereign Bonds (ISBs) in 2019, of which $ 1,000 million was raised at a fixed interest rate of 6.85% with a five-year tenure while another $ 1,400 million was raised at a fixed interest rate of 7.85% with a 10-year tenure during the first quarter of the year. Another $ 500 million was raised in the second quarter at a fixed interest rate of 6.35% with a five-year tenure and a balance of $ 1,500 million was raised at a fixed interest rate of 7.55% with a 10-year tenure.