Former Deputy Leader of the United National Party (UNP) and Member of Parliament Ravi Karunanayake said the government’s statements regarding Sri Lanka’s ability to repay its debt are positive, but concerns remain over how the necessary foreign reserves will be accumulated.
Karunanayake said that while maintaining a positive outlook is important, the country needs a clear strategy for building reserves, preferably through the Central Bank.
He noted that Sri Lanka would need to accumulate approximately US$14.6 billion for this purpose, while current reserves stand at around US$6.9 billion. He said accumulating an additional US$8 billion within 23 months would be a significant challenge.
According to Karunanayake, this would require the country to build up reserves by approximately US$400 million each month. He therefore called on the government to clearly explain how it intends to achieve this target.
He further stated that the international community would be more willing to engage in financial transactions with Sri Lanka if the government presents a clear and credible plan for building the required reserves.
