Sri Lanka, July 5 -- The United Nations Development Programme (UNDP) warned that Sri Lanka's household debt crisis has likely intensified since last measured in 2023, as it threw its weight behind a major new financial literacy drive with the Central Bank.

Speaking at the launch of the Central Bank's key financial literacy initiatives, UNDP Resident Representative Azusa Kubota cited alarming data from the 2023 Multidimensional Vulnerability Index. The report found that debt was the single largest contributor to vulnerability, with 33.4 percent of the population already impacted by unsustainable borrowing for essentials like food, medicine and education.

"In view of the continued challenges around the rising costs of living, it is highly...