Colombo, Sri Lanka – Central Bank Governor Dr. Nandalal Weerasinghe has refuted claims that Sri Lanka is heading toward a debt repayment crisis, calling such assertions completely misguided. In a press conference held at the Central Bank Auditorium on November 27, 2024, Governor Weerasinghe emphasized that Sri Lanka’s foreign debt repayment obligations were manageable and not as dire as some have suggested.
Dr. Weerasinghe outlined that, as a percentage of the country’s GDP, the maximum amount of foreign debt Sri Lanka is required to pay annually is 4.5 percent. Beyond this, only interest payments will be made until 2027, ensuring that the country is not burdened with full debt repayment in the near term.
The Governor also addressed concerns regarding the looming debt payments, explaining that several debt maturities have been extended significantly, with some repayments pushed back to as late as 2040, 2038, and 2032. “In such a long-term debt repayment framework, it is a complete myth to suggest that the full debt will be due in 2028,” Weerasinghe stated.
Dr. Weerasinghe further clarified that if creditors were to believe that Sri Lanka could not meet its obligations by 2028, they would not have agreed to extend the repayment terms. He reassured that the country’s debt restructuring plan is designed to ensure sustainable repayment without overwhelming the economy.
The statement came in response to growing concerns, particularly in financial markets, about Sri Lanka’s ability to manage its debt obligations following the country’s economic crisis. However, Dr. Weerasinghe’s remarks sought to alleviate fears by highlighting the strategic restructuring measures in place to ensure the country remains on track with its financial commitments.
As Sri Lanka continues to stabilize its economy after the 2022 financial crisis, the Central Bank Governor’s comments are intended to assure both domestic and international stakeholders that the country is on a managed path to recovery.
