He made these remarks during a meeting with social media activists held at the headquarters of the Samagi Jana Balawegaya.
Premadasa claimed that the government, led by the President, was creating a misleading impression of economic stability despite rising prices of essential goods including fuel and milk powder.
Referring to foreign reserves, the Opposition Leader stated that international standards recommend maintaining reserves sufficient to cover at least three months of imports. Although the President had indicated that reserves stand at around US$7 billion, Premadasa noted that Sri Lanka’s monthly import expenditure is approximately US$2 billion, requiring nearly US$6 billion for adequate import coverage.
He further alleged that nearly US$1.2 billion of the reserves are held in Chinese yuan and are not readily usable, leaving effective reserves at around US$5.8 billion.
Premadasa also warned that ongoing instability in the Middle East could negatively affect foreign remittances due to possible employment losses among overseas workers, adding that the government had failed to sufficiently address the issue.
He further cautioned that the conclusion of the International Monetary Fund programme in March 2027 could remove a key source of economic stability provided by international financial institutions.
According to him, a combination of declining remittances, increasing fuel prices and currency depreciation could trigger renewed economic uncertainty.
The Opposition Leader also noted that external debt repayments are expected to increase significantly from 2028, rising from approximately US$1.5 billion to US$3.5 billion annually.
He stressed that foreign reserves therefore need to be strengthened urgently, pointing out that the IMF had reportedly indicated a target reserve level of between US$13.4 billion and US$14 billion, while current reserves remain nearly half that amount.
Premadasa added that achieving the target would require monthly reserve accumulation of around US$600 million, whereas current inflows stand at only about US$60 million per month.
