Central Bank Governor Dr. Nandalal Weerasinghe urged Sri Lanka’s private sector to create buffers to protect against external shocks, echoing steps taken by the Government in recent months. He made these remarks at the AmCham Sri Lanka Members Forum titled “Charting Sri Lanka’s Economic Course,” attended by key public and private sector leaders.
Dr. Weerasinghe outlined that Sri Lanka has built reserves of $6.5 billion and is achieving a primary budget balance, a current account surplus, and successful fiscal consolidation—despite political changes. He emphasized the importance of diversification in markets and products and encouraged the private sector to prepare for uncertainties while remaining optimistic.
Addressing concerns about Sri Lanka’s external debt after the current relief period ends in 2027, he firmly stated that the notion of an economic collapse in 2028 is a myth. He explained that even during the debt pause between 2022 and 2023, Sri Lanka continued servicing multilateral debt and has consistently met debt obligations. In 2025, the country expects to manage $2.75 billion in debt servicing, backed by solid reserves and steady forex inflows from exports, remittances, and tourism.
The CBSL Governor also touched on the near-completion of external debt restructuring, with only SriLankan Airlines’ debt remaining. He highlighted stable inflation and exchange rates and noted the progress of the IMF program. Furthermore, the Government is engaged in ongoing discussions with the US regarding a proposed import tariff regime, aiming for outcomes favorable to Sri Lanka’s global trade position.
Treasury Secretary Mahinda Siriwardana also participated as a special guest, and the forum concluded with a call for stronger public-private collaboration. AmCham Sri Lanka President Shirendra Lawrence reaffirmed the organization’s commitment to fiscal reform, digital transformation, and deeper trade ties with the United States.
Published by Business Ceylon
