Ranil warns Sri Lanka faces new economic challenge over future debt repayments

Former President Ranil Wickremesinghe has warned that Sri Lanka must urgently strengthen foreign exchange earnings to meet future debt obligations and avoid another economic crisis.

Speaking at an event, Wickremesinghe said the current administration had decided not to proceed with the previous Government’s Economic Transformation programme but had yet to introduce an alternative strategy to generate the foreign exchange required for future debt repayments.

Recalling the 2022 economic crisis, he said Sri Lanka had faced collapsing Government revenue, severe foreign exchange shortages and difficulties in servicing its debt.

Wickremesinghe said India provided around US$4 billion in assistance during the crisis, while Bangladesh, the World Bank, the Asian Development Bank, Japan and other international partners also supported Sri Lanka.

He credited officials and ministers involved in the recovery programme with helping stabilise the rupee and prevent a deeper economic collapse.

Wickremesinghe said the country should now focus on increasing exports, attracting investment and generating foreign exchange.

He described Sri Lanka’s next economic challenge as a “third war”, warning that failure to overcome it could again place the country in serious financial difficulty.

Former Minister Ranjith Siyambalapitiya also addressed the event.