Sri Lanka will not experience another sovereign debt crisis, and the nation is set to commence the repayment of its outstanding external debts as scheduled, according to Central Bank Governor Nandalal Weerasinghe. Addressing an event organized by the Ceylon Chamber of Commerce, he dismissed the so-called “2028 phobia,” which suggests that the government and the Central Bank will be unable to meet debt service payments, potentially leading to another debt restructuring.

The governor emphasized that historically, Sri Lanka has maintained a robust reputation for fulfilling its debt obligations until 2022, when depleted foreign reserves hindered their ability to do so. “I don’t see any reason even talking about any restructuring or another default is completely misguided misperception. That creates unnecessary doubt among investors and countries willing to lend to Sri Lanka,” he stated.

In 2025, Sri Lanka is set to pay USD 3.9 billion to meet its debt service obligations, marking it as one of the largest debt servicing payments. Additionally, the governor highlighted that with current strategies to build reserves of 8 to 10 billion USD within the next two years, and with yearly debt servicing requiring around 3.5 billion USD, there would be no necessity for another restructuring.

(Colombo/February 6, 2026)