Opposition Leader Sajith Premadasa has warned that Sri Lanka remains vulnerable to serious economic risks, accusing the government of presenting a misleading picture of the country’s financial situation instead of openly addressing emerging challenges.
Premadasa made the remarks during a meeting with social media activists at the Samagi Jana Balawegaya (SJB) headquarters.
He claimed that the government, led by the President, is failing to adequately inform the public about potential economic threats while attempting to project an image of stability, despite rising living costs and increases in the prices of essentials such as fuel and milk powder.
Referring to the country’s foreign reserves, Premadasa said international standards generally recommend maintaining reserves sufficient to cover at least three months of imports. While the President has stated that Sri Lanka’s reserves stand at around US$ 7 billion, Premadasa noted that the country’s monthly import bill is approximately US$ 2 billion, meaning at least US$ 6 billion is required to meet the three-month benchmark.
He further claimed that nearly US$ 1.2 billion of the reserves are held in Chinese yuan, which he argued are not readily usable, reducing the country’s effective reserves to around US$ 5.8 billion.
Premadasa also expressed concern over the country’s reliance on foreign remittances, warning that instability in the Middle East could negatively impact inflows if Sri Lankan workers lose employment opportunities in the region.
According to him, the government has not sufficiently addressed the risks associated with possible disruptions to remittance income.
The Opposition Leader further warned that the conclusion of Sri Lanka’s IMF programme in March 2027 could remove a key source of economic stability and international confidence.
He said that weaker remittances, rising fuel prices, currency depreciation, and the absence of International Monetary Fund (IMF)-backed support could together trigger renewed economic instability in the coming years.
Premadasa also pointed to future debt obligations, noting that external debt repayments are expected to increase sharply from 2028, rising from around US$ 1.5 billion to US$ 3.5 billion annually.
He stressed that Sri Lanka therefore needs to significantly strengthen its foreign reserves, adding that while the IMF has reportedly indicated a target reserve level of between US$ 13.4 billion and US$ 14 billion, current reserves remain at roughly half that amount.
According to Premadasa, achieving the required reserve target would require monthly reserve accumulation of approximately US$ 600 million, whereas current inflows are estimated at only around US$ 60 million per month.
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