Sri Lanka’s economy stabilizes, debt repayments on track – Chathuranga

Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe says Sri Lanka’s economy has stabilized and there is no basis for fears of another foreign exchange or budget crisis.

In a Facebook post published today (February 9), he claimed a small group is waiting for the country to become bankrupt again, including individuals upset over the change in political culture and others angered by the National People’s Power (NPP) government led by the Janatha Vimukthi Peramuna (JVP) coming to power.

Abeysinghe stated that 2025 was a year in which Sri Lanka surpassed key economic indicators and managed the state budget under strong fiscal discipline. He said the Central Bank of Sri Lanka (CBSL) has confirmed that net international reserves have exceeded the required level under the Extended Fund Facility (EFF) program, although some critics point out that gross reserves did not increase sharply.

He also rejected claims that debt repayments would only begin around 2028, calling them false.

According to him, Sri Lanka held about USD 6 billion in reserves in 2024 partly because vehicle imports were restricted and capital investments were prevented from leaving the country. However, in 2025 the country repaid USD 3.9 billion in foreign debt and imported vehicles worth USD 2.1 billion while still maintaining reserves at USD 6.7 billion.

He further said the country recorded USD 17.2 billion in exports, USD 7.8 billion in workers’ remittances, USD 3.2 billion in tourism earnings and USD 1.1 billion in foreign direct investment during 2025 despite global economic changes.

Abeysinghe expressed confidence that all these sectors will grow by more than 10 percent in 2026. He argued that debt servicing obligations over the next seven years will be lower than the amount paid in 2025, and therefore Sri Lanka has no reason to face another economic crisis.

He added that political opponents expecting an economic collapse will be disappointed, claiming the crisis period has ended and that corrupt figures will not be able to regain power.