SL Debt Sustainability: CB Governor Dismisses "2028 Phobia" 📈

Central Bank Governor Dr. P. Nandalal Weerasinghe has categorically ruled out the need for a second debt restructuring, debunking speculation regarding a potential repayment failure in 2028. Addressing the Ceylon Chamber of Commerce, he emphasized that current debt service obligations remain manageable under existing terms. • Debt Service Outlook: The Governor presented data showing that annual external debt service payments are projected to stay below US$ 3.5 Bn through 2032. 2026: US$ 3.271 Bn 2027: US$ 2.537 Bn 2028: US$ 3.231 Bn 2029: US$ 3.386 Bn 2030: US$ 3.556 Bn • Key Highlights: Sustainability: With plans to build reserves to US$ 8-10 Bn in the coming years, the Governor noted that an annual service requirement of less than US$ 3.5 Bn is well within the country's capacity. Historical Context: While the 2022 default was due to a lack of resources, the current trajectory reflects a strong "willingness and ability" to meet obligations. 2025 Payments: Total payments for 2025 are estimated at US$ 3.935 Bn, marking one of the highest post-restructuring periods due to the settlement of arrears. • Macroeconomic Projections: The Governor also highlighted positive momentum in the broader economy, projecting GDP growth of approximately 4.5% in 2025 and nearly 5% in 2026, driven by recovery and technology adoption. _Note: Figures based on Central Bank projections and current restructuring terms._ ---