Freetown, 3rd June 2026- Sierra Leone’s fiscal operations for April 2026 reveal a sharp dependence on domestic borrowing to plug financing gaps, as external loan inflows remained absent while debt servicing obligations mounted.
According to the Statement of Fiscal Operations (Consolidated Fund) signed by Accountant General Richard S. Williams, the government raised SLE 1.17 billion in net domestic borrowing during April, a significant increase from SLE 565 million in March. Treasury bills were the main instrument, accounting for SLE 1.26 billion in April alone, underscoring the state’s reliance on short-term debt markets.
External borrowing, budgeted at SLE 2.52 billion for the year, registered no inflows during the first four months. Meanwhile, external debt amortization payments reached SLE 180 million in April, bringing total repayments to SLE 798 million between January and April.
Long-term domestic debt repayments also weighed on the fiscal position, with SLE 89 million settled in April, adding up to SLE 229 million for the year to date.
Despite the surge in borrowing, overall financing flows remained negative. Net financing in April stood at SLE 878 million, but cumulative flows from January to April showed a deficit of SLE 280 million. The strain was further reflected in government bank balances, which fell by SLE 572 million in April and by a staggering SLE 4.54 billion over the four-month period.
The figures highlight the government’s growing dependence on domestic debt markets amid limited external financing, while rising debt service costs continue to erode fiscal space. Analysts warn that the heavy reliance on treasury bills could heighten rollover risks and increase interest costs, adding pressure to already fragile public finances.
