Circular debt in the power sector has increased in the first five months of the ongoing financial year (FY). Sources told that the debt shot up by Rs223 billion since July 2025 to reach Rs1,837 billion in November 2025 within two months of the signing of agreements to reduce the debt by Rs1225 billion.
Despite the fact that the government had signed agreements with banks in September last year to reduce the debt, it increased by Rs144 billion in October and November.
In September, the debt stood at Rs1,693 billion, while it was Rs1,614 billion in June 2025.
Sources informed that compared with November 2024, the debt in November 2025 came down by Rs544 billion.
It was Rs2,381 in November 2024, they added.