Business
Foreign debt restructuring: A breather for Sri Lanka to repair its low reserve buffers

By Sanath Nanayakkare
Sri Lanka is currently negotiating with foreign creditors to reduce the country’s high share of foreign currency debt liabilities because it would give Sri Lanka a breather and space to rebuild its reserve buffers, a press conference at the Central Bank revealed.
In this exercise, Sri Lanka is looking to build USD 10 billion worth of foreign reserves while keeping to a maximum forex debt service target of 4.5% of GDP in 2027-2032, Dr. Nandalal Weerasinghe, the Governor of the Central Bank of Sri Lanka (CBSL) said on August 24, 2023.
“We are negotiating to restructure our foreign debt because our forex reserves are not sufficient repay those loans as they are. The whole purpose of foreign debt restructuring is to avoid ending up in another economic crisis; otherwise there would have been no need for foreign debt restructuring,” the Governor explained.
He made these remarks during the Q&A session at the press conference held to enlighten on the newest monetary policy review of the Bank.
When our sister paper Divaina asked if the country could fall back into a crisis again by September- October 2023 when Sri Lanka begins to repay its suspended foreign loans, the Governor said that it is less likely to happen.
“Our core target post-foreign debt restructuring is to increase the foreign reserves. We are negotiating to restructure our foreign debt because our capacity and foreign exchange reserves are insufficient to make the debt repayments as they occur. Otherwise, there would have been no need for foreign debt restructuring,” he emphasized.
The Governor went on to say that a loan extension agreement with foreign creditors would help Sri Lanka to re-commence payments of the suspended foreign loans at a feasible level while accumulating foreign reserves.
“We hope to negotiate a maximum forex debt service target of 4.5% of GDP in 2027-2032 as the Finance Ministry has envisaged in its report ‘Debt service payments as a percentage of GDP’. Currently, this ratio is 9.4%. So we are asking to reduce it by a half. Thus if we can bring down foreign loan repayments of USD 6 billion down to USD 3 billion per annum, repaying that USD 3 billion won’t be unfeasible. Discussions are in progress to achieve this,” he said.
The Governor pointed out that Sri Lanka has consistently honoured repayment of loans obtained from the World Bank and the Asian Development Bank, and as foreign reserves position is getting better the country has started repaying loans taken from Bangladesh as well.
“Amid these positive developments, we are negotiating to extend the period of foreign debt in a manner the repayments are able to be sustained. That is why we are discussing a grace period, reduction of interest costs or a haircut in this regard. Once our foreign debt is restructured, new loans would flow in from the World Bank and the ADB, in addition to the assistance from the IMF. Further, Japan will start its projects and those loans will come in too. Receipts from Tourism and Exports with which we have managed so far are also there. So, in my view, re-commencing to pay foreign debt won’t have a big impact on the foreign reserves level as some have feared,” he said.
“This issue feared in some quarters is either without awareness or for some other reason would arise only if foreign reserves begin to dip after we have begun to repay foreign debt. The programme in 2027-2032 to manage our foreign currency debt liabilities at 4.5% of GDP should help us build our foreign reserves to 10 USD billion from its 3 billion. So, foreign debt restructuring will bring us two-fold relief. One is reducing the burden of foreign loan repayments and at the same time being able to accumulate our foreign reserves to make the economy stronger,” the Governor elucidated.
Restoring public debt sustainability is one of the key objectives of Sri Lanka’s IMF Program which requires policy actions and comprehensive debt treatment. There are several key pillars of Sri Lanka’s USD 3 bn IMF programme approved on 20 March 2023. They are namely: revenue-based fiscal consolidation, fiscal structural reforms, protect the poor and vulnerable, restore price stability and rebuild external buffers, safeguard financial system stability, growth-enhancing reforms, and last but not least, reducing corruption vulnerabilities.
Business
‘Sri Lanka is a Union Country’, says global labour leader

ITF pledges expanded partnership with transport sector workers at Colombo Welfare Hub launch
In a landmark moment for Sri Lanka’s transport sector, the International Transport Workers’ Federation (ITF) unveiled The Palace—a brand new welfare facility for seafarers—while declaring its commitment to partner with the nation’s entire transport workforce.
ITF General Secretary Stephen Cotton delivered a stirring message at the launch on March 20, hailing Sri Lanka as “a union country” with robust labour laws and a resilient worker-led culture; a rare endorsement from a global labour leader.
“I call Sri Lanka a union country because it’s a nation that takes pride in its labor laws and collective strength,” Cotton declared to a room of policymakers, shipowners, ship crews, ILO officials, women seafarers and maritime stakeholders.
“The ITF doesn’t just want to support seafarers—we’re here to partner with all transport workers, from railways to ports, to build a fairer future,” he said.
Located in central Colombo, The Palace—a collaboration between the ITF, its Seafarers Trust, and the National Union of Sri Lankan Seafarers (NUSS) —aims to transform the lives of maritime workers. The facility offers affordable lodging, family reunification spaces, counseling, and recreational resources for seafarers transitioning to and from grueling voyages.
Boa Athu, President of NUSS called it a “long-overdue sanctuary” for workers who sustain Sri Lanka’s economy through foreign remittances.
Cotton emphasized the timing of the launch amid global instability: “We’re in turbulent times—geopolitical shifts, climate crises, and economic uncertainty. But here, Sri Lanka’s unions have shown what solidarity can achieve. He noted NUSS’s growth from 7 to 30,000 members, calling it a “phenomenal” model for worker empowerment.
The ITF’s vision extends far beyond the docks. Cotton revealed he had met with railway workers the day prior, signaling broader ambitions.
Transport workers were the lifeblood of the global economy linking supply chains and keeping the world moving, and they were vital to successfully responding to the challenge of Covid-19. We mustn’t forget the risks that transport workers faced on the frontlines. Now, we must ensure they’re shielded from crises like climate change,” he said, framing the climate emergency as a “workers’ crisis” requiring urgent re-training for green energy transitions.
With partnerships spanning the UN Global Compact and International Maritime Organization, the ITF plans a Singapore forum to accelerate fossil fuel phase-outs.
“Seafarers here are already training for new energy technologies—but placing them in jobs remains a challenge,” Cotton admitted.
Referencing global political volatility—including U.S. leadership shifts—Cotton stressed the need for “predictable” worker alliances like the ITF. He praised Sri Lanka’s push to grow its maritime economy, including government plans to boost container capacity and recruit women into skilled and rewarding roles.
“The Palace isn’t just a building—it’s a symbol of what’s possible when unions, governments, and global partners unite,” Cotton said. “Sri Lanka’s workers are its economy. Safeguarding their wellbeing isn’t charity—it’s strategic,” he said.
As the ITF expands collaborations in Brazil, Mexico, and beyond, Sri Lanka’s transport sector stands at a crossroads. The Palace offers immediate relief for seafarers, but Cotton’s message signals a larger ambition: positioning the island as a beacon of worker solidarity in an unstable world.
For Sri Lanka’s 30,000-strong NUSS members—and thousands more in railways, ports, and tourism—the call is clear: the fight for fair conditions is now a global alliance.
By Sanath Nanayakkare
Business
Alipay+ joins as Gold Sponsor of LankaPay Technnovation Awards 2025

LankaPay – Sri Lanka’s National Payment Network recently announced its partnership with Alipay+ as the Gold Sponsor of the LankaPay Technnovation Awards 2025. This marks Alipay+’s second consecutive year of collaboration at this landmark event, reinforcing Alipay+’s commitment to advancing digital payment solutions and financial innovation in Sri Lanka’s evolving financial sector.
LankaPay Technnovation Awards is Sri Lanka’s first and the only payment technology innovation awards; and the only financial sector awards competition in the country which is organized for the 7th time in 2025. The grand finale is scheduled to be held on 26th March 2025 from 6.00pm onwards at the Grand Ballroom, Shangri-La Colombo under the patronage of the Chief Guest – Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, and Deputy Minister of Digital Economy, Eng Eranga Weeraratne and Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy as Guests of Honour. The event will see an audience of over 500 movers and shakers of the country’s financial sectors including Chairmen and CEOs of FIs and FinTech companies, Government officials, policymakers and top-tier delegation of leading international payment networks.
Business
Sanasa Life Insurance sponsors 95th ‘Battle of the Maroons’

Sanasa Life Insurance sponsored the 95th edition of the big match between Ananda College and Nalanda College. The highly anticipated three-day big match ended in a draw. Adverse weather conditions prevented a decisive outcome, but based on their performances, both teams were declared joint winners.
‘The Best Fielder’ award was also sponsored by Sansa Life Insurance. “We see brilliant cricketing talent being played on the field right before our very eyes. These youngsters are the future of cricket that takes the name of Sri Lanka proudly to the world someday. We are glad to have been a part of their journey forward”, said Sanasa Life Insurance CEO Mr. Nuwanpriya Gunawardane, commenting on the outstanding fielding performance by Chanul Athukorala of Nalanda College.
Commenting on the match, Gunawardane added: “Sanasa Life Insurance is honoured to support this legendary cricketing battle. We believe in encouraging the younger generation to overcome challenges and strive for greatness. This match embodies those values.”
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