Sri Lanka eyes $9 billion in foreign reserves by end-2026

The Sri Lankan Government expects strong worker remittances and increased foreign exchange inflows to help it build foreign reserves to around US$9 billion by the end of 2026, Finance and Planning Deputy Minister Prof. Anil Jayantha Fernando told Parliament yesterday (20).

Fernando said Sri Lankan expatriates had sent more than US$5 billion in remittances during the first seven months of this year.

He said the Government is seeking to strengthen foreign exchange earnings by expanding investment, exports, remittances and other sources of inflows, while also working to attract greater foreign direct investment (FDI).

The Government’s efforts come as Sri Lanka prepares for significant external debt repayments, with Parliamentarian Ravi Karunanayake highlighting that the country is expected to face around US$3.9 billion in foreign debt repayments in April 2028.

Responding to Karunanayake’s concerns over future foreign financing requirements, Deputy Minister Fernando said the Government is looking beyond Sri Lanka’s traditional foreign exchange-generating sectors to identify new areas capable of producing higher returns.

While sectors such as apparel remain important to the economy, he noted that the level of value addition in certain traditional industries remains relatively low.

Fernando said the Government therefore plans to diversify investment and foreign exchange sources while developing sectors with greater potential to generate foreign earnings.

He also stressed the importance of Sri Lankan workers employed overseas, saying the Government is adopting a strategic approach to directing workers towards international labour markets where they can secure better earnings and generate higher foreign exchange inflows for the country.