Sri Lanka is actively reducing its dependence on foreign borrowing while expanding domestic financing through longer‑term bonds, Deputy Finance Minister Anil Jayantha Fernando said. The move is part of the island nation’s effort to make its debt more sustainable under an International Monetary Fund program.

The government is also shifting away from frequent rollovers of short‑term Treasury bills in the local market, favoring longer‑dated instruments that provide more stable funding. This strategy aims to lower refinancing risk and improve fiscal resilience, especially as the country faces heightened debt‑service pressures.

Speaking from his Colombo office, Fernando highlighted that the focus on domestic bonds and reduced bill rollovers aligns with broader economic reforms introduced in 2026. The approach reflects a concerted push to strengthen sovereign debt management, enhance market confidence, and support long‑term growth while maintaining compliance with IMF‑backed adjustment measures.

Analysts view the shift as a positive step toward fiscal stability, noting that increased issuance of longer‑term bonds can attract both local and overseas investors seeking secure returns. By curbing reliance on external loans, Sri Lanka hopes to reduce vulnerability to global interest‑rate swings and currency volatility, thereby safeguarding its economic outlook.