Deputy Minister Chathuranga Abeysinghe has hit back at former President Ranil Wickremesinghe over his warning that Sri Lanka could face another economic crisis after 2028, saying there is no reason for the country to become bankrupt again.
Wickremesinghe had warned that Sri Lanka would face a major challenge when debt repayments increase after 2028 and said the country should build its foreign exchange reserves to around US$15 billion.
He said the Central Bank expects reserves to reach around US$8 billion by the end of 2026 and questioned how Sri Lanka would generate the additional US$7 billion needed to reach the estimated US$15 billion level.
Responding to the remarks, Abeysinghe accused Wickremesinghe of making misleading claims about Sri Lanka’s debt obligations.
The Deputy Minister 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 while simultaneously increasing its foreign reserves.
He said the amount to be paid in 2027 would be lower, at around US$2.7 billion.
Abeysinghe also cited figures presented by the Central Bank to investors, saying they demonstrate that Sri Lanka can continue servicing its debt while strengthening its reserve position.
He said foreign reserves are expected to reach around US$8 billion by the end of 2026 and argued that there would be no difficulty in continuing debt repayments while building reserves.
The Deputy Minister further said remittances, exports, investments and tourism earnings are expected to increase in 2026 compared with the previous year.
Wickremesinghe, speaking at the launch of former minister Ranjith Siyambalapitiya’s book “Yudha Dekakata Ura Dee” in Colombo, had cautioned that the relief Sri Lanka received on debt repayments did not mean the country’s economic difficulties had been permanently resolved.
He warned that failure to accumulate sufficient foreign exchange ahead of higher future debt obligations could expose Sri Lanka to another serious economic crisis. (Newswire)