📈 Govt. Eases Capital Outflow Restrictions; Maintains Confidentiality on Bond Strategy

• Capital Outflow Liberalisation: Local firms can now invest overseas up to US$ 750,000 without prior Central Bank approval. Regulations on capital allowances for emigrants have also been revised to boost investor confidence. • Fiscal & Revenue Performance: Government revenue increased from 13.5% to 16.7% of GDP. Revenue from vehicle imports contributed approximately 1.2 percentage points to this overall increase. • Reserves & Economic Outlook: Sri Lanka has accumulated over US$ 1.5 Bn in reserves for the fourth consecutive year, remaining on track to close 2026 with roughly US$ 8 Bn. The IMF acknowledged the economy's resilience against external shocks. • Debt Management Policy: Specific plans regarding International Sovereign Bonds (ISBs)—such as buy-backs or new issuances—will not be disclosed in advance due to market-sensitivity. Decisions rest with the Finance Ministry and the Public Debt Management Office. • SME Development: Parliament approved an ADB loan intended for disbursement to support the local SME sector.