Sri Lanka targets USD 9 billion in foreign reserves by 2026

Sri Lanka is targeting a foreign reserves milestone of USD 9 billion, with the government expressing confidence in reaching this goal by the end of 2026. Deputy Minister of Finance Anil Jayantha Fernando attributed this positive outlook to strong trends in foreign remittances, noting that migrant workers remitted over USD 5 billion in the first seven months of the year. The administration is also focusing on increasing net foreign exchange through exports, investments, and diversifying foreign exchange sources to prepare for significant debt repayments due in 2028.

In a parallel effort to bolster the economy, the nation has launched a 1.5 billion rupee interim tourism promotion campaign targeting six international markets. This initiative serves as groundwork for a larger 5 billion rupee global campaign intended to revitalize the tourism sector, a critical source of foreign currency.

However, the government has also revised its 2026 tourism arrival and revenue targets downward. This recalibration follows a decline in high-end visitor numbers, which officials linked to geopolitical instability and escalating tensions in the Middle East. The downward revision reflects a more cautious approach to the recovery of the tourism industry, which remains central to the country’s IMF-supported economic stabilization program.