Sajith Premadasa urges urgent IMF talks, warning Sri Lanka faces debt repayments, dollar pressure and reserve risks after 2027.
Sajith Premadasa called for immediate talks on a new IMF programme, warning that Sri Lanka could face serious economic risks after 2027.
Making a special statement in Parliament today, the Opposition Leader urged the government led by the President to move quickly towards a successor agreement with the International Monetary Fund.
He said the current IMF programme will end in March 2027, after which Sri Lanka will lose access to the Extended Fund Facility.
Premadasa said the IMF requires Sri Lanka to maintain reserves of US$14.2 billion, but the country currently has only around US$7 billion, which is nearly 50% of the required amount.
He warned that the possibility of building reserves up to US$14.2 billion is extremely limited, estimated at only 0.01%.
Therefore, he said the government must begin discussions on a successor IMF programme now instead of waiting until the country faces another crisis.
Debt Repayments Begin From 2027
The Opposition Leader said Sri Lanka will have to begin repaying both loan capital and interest from 2027.
He warned that this would push the country into a growing debt burden.
Although reserves should be at US$14.2 billion, he said only around US$7 billion is currently available, and the usable amount is even lower.
Premadasa pointed out that Sri Lanka should be adding around US$600 million a month to reserves.
However, he said the country is currently accumulating only about US$60 million monthly.
Sri Lanka Faces Several Economic Pressures
He further said Octane 92 petrol prices have increased by 39%.
Although petrol prices reached Rs. 470 in 2022, he noted that they are now around Rs. 410.
Premadasa warned that Sri Lanka is facing serious economic difficulties, including a 9.2% depreciation of the rupee and a 17% fall in tourism revenue.
Although foreign remittances have exceeded US$8 billion, he said nearly 60% of them come from Middle Eastern countries.
He warned that ongoing conflicts in the Middle East could increase unemployment and reduce remittance inflows.
“This Is A Mountain Of Debt”
Premadasa warned that by 2027, Sri Lanka would face a massive debt burden.
He questioned how the country would manage that situation without IMF oversight and financial provisions.
He said Sri Lanka would have to repay US$3–4 billion annually in capital repayments, in addition to interest payments, from 2027 onwards.
The Opposition Leader accused the government of leading the country into a dangerous economic trap.
“We Do Not Want Another Era Of Queues”
Premadasa stressed the need to extend the current programme and negotiate a new agreement from a stronger and more stable position.
He said this was necessary to protect the country’s 22 million people.
Although the government claims there is no economic crisis, Premadasa said the US dollar rose from Rs. 346 yesterday to Rs. 354 today.
He said the opposition does not want the public to face fuel queues, medicine shortages, or fertilizer shortages again.
He urged the government to understand the seriousness of the situation.
“This Is The Start Of A Major Tragedy”
The Opposition Leader warned that rising fuel prices would force the government to use foreign reserves to pay for imports.
He said this could lead to a shortage of dollars.
Premadasa cautioned that import cover could fall below three months, creating conditions for a major economic disaster.
“Tell The Truth To The People”
He noted that oil prices had increased by 39% from January to May this year.
He compared this with the 44% increase recorded between March and June 2022.
According to Premadasa, economists have warned that if oil prices rise by 25%, Sri Lanka could once again face a balance of payments crisis.
He said the government must tell the truth to the public.
While oil prices at US$60–70 per barrel would reduce the risk, he warned that current prices above US$110 per barrel pose a serious threat to Sri Lanka’s reserves.
Ratings And Financial Mismanagement Concerns
Premadasa also highlighted several financial irregularities.
These included the alleged Rs. 13.2 billion fraud at NDB Bank, the loss of US$2.5 million while repaying debt, repeated issues with the Aswesuma welfare programme, delays in postal payments, and problems at People’s Bank.
He warned that such incidents could negatively affect Sri Lanka’s international credit ratings.
Call For Immediate IMF Talks
Premadasa further stated that the Samagi Jana Balawegaya would hold a special discussion this evening with all relevant parties regarding the rapid rise of the US dollar.
He urged the government to wake up to the seriousness of the situation and hold a proper parliamentary discussion.
He called on the government to work together to prevent Sri Lanka from heading towards an economic catastrophe.
Premadasa said the government must adopt a clear economic policy framework, begin immediate talks with the IMF on a successor agreement, and ensure that a new programme is ready to begin from April 2027, when the current arrangement expires in March 2027.
