Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe today (06) categorically stated that the country has no need for another debt restructuring, directly addressing and dismissing the persistent "28 phobia", speculation that Sri Lanka might face a repayment failure or require further debt relief in 2028.

Speaking as keynote speaker at the Ceylon Chamber of Commerce’s launch of the Outlook 2026 report, the Governor, who played a key role in the 2022 domestic and external debt restructuring processes, emphasized Sri Lanka’s historical commitment to honoring obligations and presented clear data to show the current arrangement is sustainable.

He described the fears as “completely misguided” and based on “misperception,” stating:

“I have seen some of the, what I call the 28 phobia. People are talking about in 2028 there will be another restructuring, there will be a failure, the government won't be able to meet the service payments. This story has been going around. I want to make it very clear here. Sri Lanka has had a strong reputation of willingness to meet the service obligation. What happened in 2022, we were willing, but we were not able because we didn't have sufficient resources. That was the reason why we restructured.”

The Governor highlighted that 2025 saw one of the highest post-restructuring payments, approximately US$3.935 billion (including Central Bank obligations of about US$1.3 billion and government payments of US$2.6 billion), due in part to finalizing bilateral agreements and settling certain arrears. Looking forward, he stressed that annual service payments remain manageable, especially as reserves continue to build.

He presented the following projected annual external debt service obligations (including Central Bank components) based on the current restructuring terms:

“The point I am making here is that if we are building resources in the next couple of years of 8 to 10 billion, annual service is less than 3.5 billion,” the Governor said. “I don't see any reason for even talking about another restructuring or another default — it is completely misguided, misperception.”

He warned that such speculation creates unnecessary doubt among investors and international partners, undermining confidence despite the factual evidence of sustainability.

The Governor’s remarks came during a seminar focused on "Economic Growth in the AI and Digital Era", where he also commended the Ceylon Chamber’s independent report and touched on topics such as post-cyclone recovery, projected GDP growth of around 4.5% in 2025 and near 5% in 2026, and the importance of technology adoption for productivity. However, his strongest message was aimed at restoring investor assurance by debunking debt-related fears with concrete figures.

The Outlook 2026 report, produced by the Chamber’s Economic Intelligence Unit, provides detailed forward-looking analysis.