Former President Ranil Wickremesinghe has warned that Sri Lanka could face another serious economic crisis after 2028 unless the country takes urgent steps to increase its foreign reserves and strengthen foreign exchange earnings.

Former President Wickremesinghe made the remarks while delivering the keynote speech at the launch of former Minister Ranjith Siyambalapitiya’s book, ‘Yuddha Dekakata Ura Dee’, held at the Lotus Hall of the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo.

Sri Lanka Needs US$15 Billion in Foreign Reserves

Former President Wickremesinghe said Sri Lanka’s foreign reserves are expected to reach approximately US$8 billion by the end of 2026, according to projections by the Central Bank of Sri Lanka.

However, he said the country needs to increase its reserves to around US$15 billion by 2028 to meet future debt repayment obligations. This means Sri Lanka needs to secure an additional US$7 billion over the next two years, he said, questioning how the country plans to generate the required funds.

“The main question is how we will find the US$7 billion and how we will repay the debt,” former President Wickremesinghe said.

Debt Repayments to Resume After 2028

The former President said Sri Lanka had obtained an extension on its debt repayments until 2028, giving the country time to rebuild its financial position.

However, he warned that debt repayments would resume after that period, making it essential to build adequate foreign reserves before then.

He said Sri Lanka also has significant debt obligations to meet and would need stronger foreign exchange earnings and sufficient dollar liquidity in the domestic market to meet those commitments.

Questions Over Economic Policy After IMF Programme

Former President Wickremesinghe also raised concerns about Sri Lanka’s economic direction after the current International Monetary Fund (IMF) programme is expected to conclude in March 2027.

He questioned whether the government plans to continue working with the IMF and what economic programme it intends to implement thereafter.

According to former President Wickremesinghe, several laws were introduced during his administration to strengthen Sri Lanka’s economic framework, including the Central Bank Act, Public Finance Management Act, Public Debt Management Act and Economic Transformation Act.

He claimed that the current administration had decided not to proceed with the Economic Transformation programme but had not introduced an alternative strategy to generate the foreign exchange required to meet future debt obligations.

Ranil Recalls 2022 Economic Crisis

Former President Wickremesinghe also recalled the severe economic crisis Sri Lanka experienced in 2022, saying the country’s economy had collapsed amid declining government revenue, foreign exchange shortages and difficulties in meeting debt obligations.

He said Sri Lanka received significant financial assistance from the IMF and other international partners during that period.

According to former President Wickremesinghe, India provided approximately US$4 billion in assistance, while Sri Lanka also received support from Bangladesh, the World Bank, the Asian Development Bank, Japan and other international partners.

He credited the officials and ministers involved in the recovery effort with helping stabilise the rupee and prevent the economy from collapsing further.

Focus Should Be on Economic Recovery

Former President Wickremesinghe said the country’s priority should now be generating foreign exchange, increasing exports and attracting investment to strengthen the economy.

He urged policymakers to focus on Sri Lanka’s future debt obligations rather than allowing political and constitutional issues to overshadow the country’s economic challenges.

Referring to the theme of Siyambalapitiya’s book, which focuses on two major crises, former President Wickremesinghe said Sri Lanka now faces what he described as a “third war” — an economic battle that will determine the country’s future.

He warned that failure to overcome this next economic challenge could once again place Sri Lanka in serious financial difficulty.

Former Minister Ranjith Siyambalapitiya also addressed the event.