IMF Projects $ 3 Bn Bond Issuance for SL by 2028 📈

The IMF projects Sri Lanka will tap global capital markets for $ 3 Bn in International Sovereign Bonds (ISBs) by 2028 under its EFF program, though the Government emphasized it will periodically decide on actual issuances. • Bond Issuance Projections: $ 1.5 Bn expected each in 2027 and 2028, with $ 0 planned for 2026 and 2029. • Foreign Currency Swaps: Outstanding currency swaps stood at $ 4.1 Bn at end-May 2026 ($ 1.8 Bn international, $ 2.3 Bn domestic). Nearly all domestic swaps mature within 12 months, down from a peak of $ 2.7 Bn in Aug 2016. • Reserve Trajectory: Gross official reserves recovered to $ 6.9 Bn (3.4 months of import cover) in Aug 2026, rising from $ 1.85 Bn in June 2022 and $ 6.84 Bn in Dec 2025. Net International Reserves (NIR) target under the EFF remains at $ 944 Mn. • Central Bank FX Purchases: Net forex market purchases slowed down to $ 0.56 Bn in H1 2026, compared to $ 1.76 Bn in H1 2024 and $ 0.98 Bn in H2 2025. • Liability Management: The Public Debt Management Office (PDMO) is actively strengthening regulatory frameworks to execute liability management operations and mitigate interest, currency, and financing risks.