No More Commercial Loans & Sri Lanka Will Not Collapse in 2028 : AKD

COLOMBO (News 1st); President Anura Kumara Dissanayake announced that Sri Lanka is making significant strides toward economic recovery and stability, emphasizing that the government is strengthening the country’s foreign reserves without resorting to further commercial borrowing.

Speaking on the nation’s financial outlook, President Dissanayake highlighted the rapid progress of investment and development projects from China, India, and Japan, many of which are expected to commence before the end of the year.

“Our need for dollars is critical, and I’m proud to say Sri Lanka is now generating foreign exchange from multiple sources,” he said. “This year, migrant workers have sent back the highest amount of remittances in our history.”

He noted that tourism has also surged, with 2025 poised to become the year with the highest number of tourist arrivals and dollar earnings from the sector. Export income is similarly on track to reach record highs.

The President revealed that Letters of Credit worth $1.2 billion have been opened for vehicle imports, signaling economic confidence. Additionally, Sri Lanka has received $563 million in foreign direct investment through the Board of Investment (BOI) in just six months—a 101% increase compared to the previous year.

Four new projects in the Colombo Port City have also been approved, valued at $1.4 million.

“For years, the government’s accounts were in overdraft. Today, the Central Bank maintains reserves worth trillions of rupees,” he said.

Foreign reserves currently stand at $6.3 billion, with expectations to surpass $7 billion by year-end. 

Addressing concerns about 2028, President Dissanayake dismissed fears of economic collapse, assuring that debt restructuring has minimized repayment burdens through 2031.

“We’ve entered all repayment data into our financial systems. If we borrow today, we already know what we’ll need to repay by 2040,” he added.

The government expects revenue of Rs. 4.5 trillion in 2025, with actual earnings already exceeding estimates. Customs has earned Rs. 80 billion more than projected, and the Excise Department has seen a 103% revenue increase in the first five months.

“We are generating income. This government will not collapse,” the President affirmed. “We’ve stabilized the first step of the economy. It’s stable. There is hope. Investors are coming.”