Former President Ranil Wickremesinghe has warned that Sri Lanka could face another severe economic challenge from the end of 2028 unless the country builds its foreign exchange reserves to around US$15 billion.
Speaking at the launch of former minister Ranjith Siyambalapitiya’s book “Yudha Dekakata Ura Dee” in Colombo, Wickremesinghe said Sri Lanka’s next major challenge would begin when debt repayments resume after 2028.
He said the Central Bank expects foreign reserves to reach around US$8 billion by the end of 2026, but questioned how the country would secure the additional US$7 billion required to reach the estimated US$15 billion reserve level by 2028.
According to Wickremesinghe, Sri Lanka currently has no clear programme to generate the additional foreign exchange required.
He warned that failure to strengthen reserves and prepare for the resumption of debt repayments could put the country at risk of falling into another serious economic crisis.
Wickremesinghe said Sri Lanka had obtained relief from debt repayments until 2028, but stressed that this did not mean the country’s economic problems had been permanently resolved.
“We have finished the first round. Now the second round has to begin,” he said, adding that the key question was how Sri Lanka would generate sufficient foreign exchange to meet future debt obligations.
He also questioned the government’s economic strategy beyond the current IMF programme, which he said is due to conclude by the end of March 2027.
The former president said his administration introduced several pieces of legislation, including the Central Bank Act, Public Financial Management Act, Public Debt Management Act and Economic Transformation Act, aimed at ensuring stability and creating a framework for future economic growth.
However, he claimed that the current government had decided not to continue with the economic transformation programme without presenting an alternative plan.
Wickremesinghe described the challenge after 2028 as Sri Lanka’s “third war,” following the two economic battles referred to in Siyambalapitiya’s book.
“If we cannot win that war, we will be in serious trouble,” he warned. (Newswire)