Addressing a conference in Colombo titled “Economic Growth in the Age of Artificial Intelligence and the Digital Era”, the Governor acknowledged ongoing debates about whether additional government spending could increase borrowing needs and place pressure on debt restructuring efforts. However, he emphasized that prudent fiscal management and improved revenue generation over the past few years have enabled the government to maintain a surplus of approximately one trillion rupees in both state-owned banks.
Dr. Weerasinghe dismissed claims that Sri Lanka would be forced to undergo another round of debt restructuring in 2028 or face an economic collapse. He noted that in 2025 alone, the country successfully utilized its reserves to complete debt repayments amounting to USD 3.934 million.
Such unfounded statements, he warned, risk creating unnecessary doubts among investors about the country’s economic stability.
He further stated that some groups have called for a suspension of debt repayments citing damages caused by the ‘Dithwa’ cyclone. Responding to these arguments, the Governor suggested that those promoting such views may be inclined toward seeing another economic downturn. He reaffirmed that the current government remains committed to maintaining sound fiscal discipline.
Dr. Weerasinghe stressed that responsible economic management is essential to sustaining recovery and preserving investor confidence as Sri Lanka continues its path toward long-term stability.
