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CHATHURANGA ABEYSINGHE RESPONDS TO RANIL-NO THREAT TO ANOTHER BANKCRUPTCY

No threat of another bankruptcy, Deputy Minister responds to Ranil

– Deputy Minister Chathuranga Abeysinghe has rejected former President Ranil Wickremesinghe’s warning that Sri Lanka could face another economic crisis after 2028, saying there is no reason for the country to become bankrupt again.

Abeysinghe said Sri Lanka’s debt obligations are manageable and that the country is expected to continue building its foreign exchange reserves while meeting its debt repayments.He said Sri Lanka paid around US$3.9 billion in debt obligations in 2025 and is expected to pay approximately US$3.7 billion in 2026. Debt repayments are expected to fall to around US$2.7 billion in 2027, he added.

The Deputy Minister said figures presented by the Central Bank to investors demonstrate that Sri Lanka can continue servicing its debt while strengthening its foreign reserve position.He said foreign reserves are expected to reach around US$8 billion by the end of 2026, adding that there would be no difficulty in meeting debt repayments while continuing to build reserves.Wickremesinghe had warned that Sri Lanka would face a major challenge as debt repayments increase after 2028. He said the country should build its foreign exchange reserves to around US$15 billion to meet its future obligations.He noted that the Central Bank expects reserves to reach around US$8 billion by the end of 2026 and questioned how the country would generate the additional US$7 billion needed to reach the US$15 billion level.Responding to the former President’s remarks, Abeysinghe accused Wickremesinghe of presenting a misleading picture of Sri Lanka’s debt obligations.

The Deputy Minister also said remittances, exports, investments and tourism earnings are expected to increase in 2026 compared with the previous year.“These figures show that there is no reason for Sri Lanka to become bankrupt again,” Abeysinghe said, rejecting concerns that the country could face another economic crisis after 2028.

 



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