Friday Nov 28, 2025
Friday Nov 28, 2025
Friday, 28 November 2025 05:38 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
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CBSL Governor Dr. Nandalal Weerasinghe
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Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe on Wednesday provided a detailed breakdown of Sri Lanka’s external debt servicing outlook, noting that the country would see an overturn in its payments, which is considered good.
Responding to a question posed at the post-Monetary Policy Review meeting media briefing, he noted that said external interest payments alone amount to about $ 2.75 billion this year, inclusive of other related obligations.
This figure also includes foreign currency liabilities owed to State banks—the People’s Bank and Bank of Ceylon, after the Government assumed portions of their external exposures during the crisis period.
Dr. Weerasinghe noted that annual external debt servicing will average around $ 2.75 billion till 2027 under current commitments. “From 2028 onwards, however, it is projected to rise, reaching between $ 3.2 billion and $ 3.5 billion, and peaking at close to $ 4 billion in certain years within the next decade,” he said.
He also noted that annual repayments will remain elevated for the next decade despite relief secured through the recent restructuring agreements.
Citing figures from the 2025 Budget speech, Dr. Weerasinghe said Sri Lanka paid $ 1.674 billion in external debt service in 2024. In 2025, the requirement has increased to $ 2.435 billion, of which $ 1.948 billion had already been settled by September. A further $ 487 million is scheduled for payment by 31 December, much of which he believes has already been cleared. This amounts to a year-on-year increase of around $ 750 million in foreign debt servicing.
The Governor also referenced a recent article by former International Monetary Fund (IMF) Chief Mission for Sri Lanka Peter Breuer, which outlined a 10-year external debt repayment trajectory, noting that the analysis is consistent with the CBSL’s own projections.
Dr. Weerasinghe therefore reiterated that maintaining fiscal discipline, rebuilding reserves, and sustaining sound fiscal and monetary buffers will be critical to managing these repayments without destabilising the economy.
