Government Steps Up Push for Investment and Foreign Earnings Amid Debt Pressures
August 20, Colombo (LNW): Sri Lanka is intensifying efforts to attract foreign investment and broaden its sources of foreign currency as the country prepares for substantial external debt repayments in the years ahead, Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando told Parliament on Thursday.
Responding to a question from MP Ravi Karunanayake, the Deputy Minister said the Government’s economic strategy centres on expanding net foreign currency inflows through a combination of foreign direct investment, exports, overseas worker remittances and other emerging avenues.
The issue of future financing requirements came into sharper focus after Karunanayake pointed out that Sri Lanka is expected to face foreign debt repayments of about US$3.9 billion in April 2028, raising questions over how the country intends to strengthen its external financial position.
Fernando said the Government was looking beyond Sri Lanka’s traditional foreign-exchange generating industries and exploring sectors with greater potential for value creation and higher returns. While established industries such as apparel would continue to play an important role, he noted that there was scope to move towards activities capable of generating greater economic value.
The Government is also seeking to make overseas employment a more strategic component of the country’s foreign-exchange strategy. Fernando said greater attention was being given to placing Sri Lankan workers in international markets where their skills and employment opportunities could result in stronger earnings.
According to the Deputy Minister, Sri Lankans working overseas had remitted more than US$5 billion to the country during the first seven months of 2026, providing a significant boost to foreign currency liquidity.
Fernando said the Government remained confident that remittance inflows would maintain their momentum and contribute towards its goal of building foreign exchange reserves to US$9 billion by the end of this year.
He said Sri Lanka would continue monitoring changes in global labour markets and adjust its policies accordingly, while developing an external financing strategy suited to the country’s own economic circumstances.
Rather than relying heavily on a handful of conventional revenue streams, the Government is seeking to create a broader and more resilient foreign-exchange base, with investment, exports and overseas employment forming key pillars of that effort.
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