Sri Lanka will seek $2.08 billion in foreign loans next year as it completes a four-year IMF bailout programme following an unprecedented economic meltdown, President Anura Kumara Dissanayake said on Thursday.
Unveiling the budget for 2027, Dissanayake said he was still considering whether to enter into a new arrangement with the International Monetary Fund after the bailout ends in March.
Sri Lanka secured the four-year, $2.9 billion loan from the Washington-based lender of last resort in March 2023 after the country defaulted on its $46 billion foreign debt in April 2022.
“We expect to successfully complete the 17th IMF programme,” Dissanayake told parliament.
“We have appointed a committee to study whether we should enter into a new programme.”
He said the government’s foreign debt servicing in 2027 would be $2.98 billion, down from $3.59 billion this year and $3.70 billion last year.
“We have the stability required for this debt servicing,” he added.
State revenue is forecast to moderate slightly next year to 15.8 percent of GDP, down from 16.6 percent in 2026 and 16.7 percent last year, according to official figures.
The foreign loans Sri Lanka hopes to raise next year could help finance the budget.
Dissanayake’s government has also marginally increased the income tax threshold and widened the tax bands, with a slight reduction in tax rates for middle-income earners.
The upper limit of income tax remains at 36 percent.
The overall budget deficit is forecast to widen marginally to 4.5 percent of GDP in 2027, compared with 3.7 percent this year and 2.3 percent last year.
The government hopes to maintain in 2027 the 5.0 percent economic expansion recorded in 2025, the president said, adding that growth in the second quarter of this year slowed to 4.2 percent because of the impact of the Middle East war.
The IMF forecasts that Sri Lanka’s growth in 2026 will slow to 3.1 percent because of higher global energy costs.
The IMF noted last month that Sri Lanka’s economy had proved “remarkably resilient to successive shocks”, as the country recorded 11 consecutive quarters of expansion after contracting by 7.3 percent in 2022.
However, the IMF has warned that Sri Lanka “continues to face downside risks from uncertainty over the duration and intensity of the Middle East war, global trade policy and the impact of El Nino”.
Hungary on Thursday announced a raft of measures aimed at improving women’s rights, including ratifying the Istanbul Convention and scrapping a controversial “fetal heartbeat” regulation that required
Ukrainian President Volodymyr Zelensky warned European leaders Thursday to be wary of discussions between the United States and Russia
Police have arrested 354 people and seized large quantities of drugs, guns, and cash in a major global crackdown on users of the “dark web”
Macau’s economy is expected to expand at barely half the pace previously forecast this year as tighter Chinese controls on capital outflows and declining gaming revenue weigh on the tourism-dependent city, according to researchers at the University of Macau (UM).
UTM Comments is a partnership between Macau News Agency and Macao University of Tourism By Jessica Marques Macau residents are increasingly visiting the Greater Bay Area for leisure activities, and the ‘Northbound Travel for Macau Vehicles’ scheme has made trips into Guangdong even more convenient for eligible residents by allowing them to drive their own cars. According […]
Wellbeing is not an optional benefit added after business objectives are achieved. In a people-centred industry, it is part of the operating model. For Macao’s large resorts, independent restaurants and other tourism businesses, caring for employees is also a way of protecting service quality, reputation and long-term competitiveness.
As consumers spend more of their lives online, retailers are rethinking how they attract, engage, and retain customers
UTM Comments is a partnership between Macau News Agency and Macao University of Tourism By Marieta Wong, Lecturer Macau’s evolution into a global gastronomy powerhouse is the result of deliberate strategy, not chance. In fact, being designated a UNESCO Creative City of Gastronomy recognises that the city has built a distinctive culinary identity – one shaped by creativity, […]
Leading business news and insights from Macau, covering gaming, finance, tourism, and economic developments.
© 2026 Macau Business. All rights reserved.
Loading comments…