By The Pulseline News Desk
The Government is confident that Sri Lanka can build its foreign exchange reserves to $ 9 billion by the end of 2026, with strong worker remittances expected to remain a key driver of the country’s external finances.
Deputy Minister of Finance Anil Jayantha Fernando has told Parliament that Sri Lankan migrant workers had sent more than $ 5 billion in remittances during the first seven months of the year, highlighting the growing importance of overseas employment to the country’s foreign exchange position.
Responding to a question raised by member of parliament (MP) Ravi Karunanayake in Parliament on Thursday (20), Fernando has said the Government was focusing on increasing net foreign exchange inflows through a combination of exports, foreign investment and remittances.
The Government’s reserve target comes as Sri Lanka continues to rebuild its external financial position following the economic crisis, while preparing for a significant increase in foreign debt servicing requirements in the coming years.
Fernando has said efforts were also underway to diversify the sources of foreign exchange and attract greater volumes of Foreign Direct Investment (FDI), particularly ahead of substantial debt repayments scheduled for 2028.
According to the Deputy Minister, Sri Lanka faces foreign debt repayments of around $ 3.9 billion in April 2028, making the strengthening of foreign currency inflows a key priority for the Government.
He has said the Government was therefore looking beyond traditional sources of foreign exchange and exploring opportunities in non-traditional sectors that could generate additional foreign income.
The Government is also seeking to maximise the economic contribution of Sri Lankan workers abroad by directing prospective migrant workers towards segments of the international labour market where higher salaries can be earned.
The strategy is aimed at increasing the value of remittances rather than simply expanding the number of workers leaving the country for employment overseas.
Fernando has said the combination of stronger remittance inflows, increased exports, higher investment and new foreign exchange-generating sectors would help Sri Lanka strengthen its external position.
The Government believes that improving and diversifying foreign exchange earnings will be critical not only to achieving the $ 9 billion reserve target by the end of this year, but also to ensuring that Sri Lanka is better positioned to meet its sizeable foreign debt obligations in 2028.
The focus on reserves and foreign exchange inflows comes as policymakers attempt to build greater resilience into the economy and reduce the risk of renewed external financing pressures in the years ahead.
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