CB Governor hails German govt. for supporting SL’s external debt restructuring process

Shiran Fernando, Chief Economic – Policy Advisor, The Ceylon Chamber of Commerce and  Dr. Nandalal Weerasinghe - Governor of Central Bank of Sri Lanka

Gerard Victoria

Dr. Felix Neumann

The Sri Lanka–Germany Business Council (SLGBC) of The Ceylon Chamber of Commerce hosted an exclusive Breakfast Meeting with Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka.

Addressing the forum under the theme “Sri Lanka: The Way Forward,” Governor Weerasinghe shared insights into the country’s macroeconomic outlook and reform trajectory. He noted that the current path of economic stabilisation is expected to continue, supported by a strengthened policy framework and improved fundamentals. The Governor expressed appreciation to the German government for its support in Sri Lanka’s external debt restructuring process and emphasised that the recent progress, including developments related to SriLankan Airlines’ debt restructuring, is expected to positively influence the country’s sovereign credit profile.

He underscored the importance of addressing legacy structural issues to unlock higher and more sustainable growth, while reassuring participants that concerns regarding external debt repayments from 2028 onwards are unwarranted, given the buffers established by the Government and its commitment to meeting obligations.

During the interactive discussion, the Governor highlighted that the current low interest rate environment presents a conducive climate for business planning and investment. He explained that monetary policy remains guided by an inflation-targeting framework, with inflation now more stable and anchored at mid-single-digit levels compared to previous periods.

Providing an update on the IMF-supported programme, the Governor stated that while the fifth review had experienced a delay due to post-program assessments, he remains confident that the program will remain on track during the year.

The event was graced by Dr. Felix Neumann, Ambassador of the Federal Republic of Germany to Sri Lanka, Patron of the Council, and brought together over 100 distinguished participants, including Council members, representatives of German-affiliated organisations, senior government officials, and leading members of Sri Lanka’s private sector.

Welcoming the gathering, Gerard Victoria, President of the SLGBC highlighted the Council’s longstanding commitment to strengthening trade and investment ties between Sri Lanka and Germany. Established in 1999, the SLGBC continues to serve as a vital platform for fostering bilateral commercial relations built upon over seven decades of diplomatic and economic cooperation between the two nations.