A new war looms for Sri Lanka if the nation fails to build its foreign reserves to USD 15 billion before debt repayments resume after 2028, former president Ranil Wickremesinghe warned.
Speaking at the launch of former minister Ranjith Siyambalapitiya's book, 'Yudha Dekakata Ura Dee', at the Bandaranaike Memorial International Conference Hall in Colombo, the former president urged the country to focus on its long term financial survival.
He stressed that generating sufficient foreign exchange to meet debt obligations once restructuring and international aid wrap up must become the central point of economic debate.
The former president noted that Central Bank of Sri Lanka projections expect gross official reserves to reach USD 8 billion by the end of this year. However, he stated that reserves must rise further to around USD 15 billion by 2028.
Depending on whether the calculation starts from the current position or the year end target, he identified the gap as an additional requirement of either USD 6 billion or USD 7 billion.
The former president observed that the main problem facing the nation was how to repay the debt, adding that this matter required far greater focus than political or constitutional questions.
He reminded the audience that emergency support from India, Bangladesh, the World Bank, the Asian Development Bank and Japan had helped stabilise the country during the height of the crisis.
He cautioned that circumstances after the current phase of international support would be far more difficult.
With the International Monetary Fund programme concluding in March 2027, he questioned what economic framework the government would pursue afterwards.
He also highlighted an additional obligation involving approximately USD 3 billion in bonds.
The former president expressed concern over attempts to step outside key legal frameworks, such as the Economic Transformation Act, warning that such moves could risk bringing the country back to bankruptcy.
He lamented that neither Parliament nor the public had engaged in sufficient discussion regarding these looming commitments.
Drawing a direct link to the book title, which references two past wars, the former president argued that Sri Lanka was now approaching a third war focused entirely on economic endurance.
He noted that although the past two wars were over, another war was fast approaching.
The former president said that he had not brought good news, noting his habit of delivering tough warnings.
For details on sovereign debt schedules and official macroeconomic indicators, citizens can check updates provided directly by the Central Bank of Sri Lanka. Voters seeking information on broader governance structures and civic processes can refer to the Election Commission of Sri Lanka.
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