Central Bank Governor Nandalal Weerasinghe dismissed concerns that Sri Lanka will face another crisis when its debt repayments resume, calling it a misconception.
“If another crisis were inevitable, there would have been no need for debt restructuring. Without restructuring, a crisis was certain, as the government lacked sufficient reserves or the capacity to repay debts,” he explained.
Weerasinghe said that the foreign debt restructuring efforts, along with the government’s fiscal policies, were designed to strengthen financial sustainability and ensure repayments are manageable.
“In my view, the belief that debt repayments will trigger another crisis is incorrect. The current programme, if it is followed, has been structured to avoid such a situation. A government can choose not to adopt the current programme, which is another matter entirely,” he said.
Addressing journalists’ questions about the possibility of defaulting on repayments in 2028, Weerasinghe refuted the claim.
“This is a misunderstanding. It doesn’t mean that all of the debts will be repaid in 2028. If you look at the debt restructuring process, it has extended some repayment periods to 2040, others to 2038, and some to 2032. It’s a long-term repayment plan,” he said. (Newswire)
