SL Govt. Confident in Managing Post-2028 Debt Rise 📈

Deputy Minister Chathuranga Abeysinghe addressed investor concerns, dismissing fears of a renewed repayment crisis post-2028. • Debt Impact: Sri Lanka’s external debt service is projected to rise by an additional US$ 785 Mn starting from 2028. This coincides with the start of capital repayments on bilateral debt and Macro-Linked Bond (MLB) maturities. • Total Context: Independent research noted the 2028 additional payments are about US$ 1 Bn, on top of the US$ 2 Bn debt servicing requirements (interest + multilateral) in 2026/2027. • Strategy: Govt. is focused on accelerating reserve accumulation, attracting higher Foreign Direct Investment (FDI), and maintaining fiscal discipline. • Reserve Buildup Sources: Crucial focus on Tourism, Remittances, and significantly higher FDI. • FDI Target: The Government aims to double annual FDI inflows from US$ 1 Bn to US$ 2 Bn within two to three years. • Fiscal Discipline: Commitment to maintaining IMF-imposed fiscal discipline and structure will continue beyond the program's conclusion.