First time in our history, Fund Managers and Actuaries share the same stage! It was a pleasure and privilege to moderate a panel discussion at the 4th South Asian Actuarial Conference organised by the Actuarial Association of Sri Lanka (AASL). The panel was a balanced mix of

Meet the new Rs. 2,000 note @CBSL issued a Rs. 2,000 circulated commemorative currency note today to mark its 75th anniversary. A limited issue of 50 Mn notes, will be gradually released into circulation starting today.

Like, Repost and Follow Found this interesting? • Like and Repost the top tweet below, to share with others • Follow me @theGayan, for more insights on investing. 11/ https://t.co/i9AvknDP0j

Update: SriLankan Airlines (Contd.) However, Govt commits to be in compliance with the IMF Debt Sustainability parameters and with the Comparability of Treatment principles. 10/

Update: SriLankan Airlines (SLA) SLA, Govt, and bond holders completed first round of discussions on 01 Aug 2025. Most Favored Creditor Clause outlined in the new ISBs does not include public external guaranteed debt, i.e. not applicable to SLA’s bond restructuring. 9/

Update: Tax Revenue from Vehicle Imports (TRVI) • As of Aug 06,2025, TRVI amounted to LKR 321 Bn. • This is 73% of the annual estimate. • Original estimate was 1.3% of GDP. • Govt. expects to exceed the original estimate. 8/

Lability management for domestic debt? (Contd.) • ISB holders proposed that Govt. could buyback these illiquid bonds or swap them for longer-term, or lower rate, liquid T Bonds • Seems no such plans until PDMO becomes fully functional, in 2026 7/

Lability management for domestic debt? • Several new series and types of debt securities were issued during DDR & EDR. For e.g. T Bonds with step-down coupons • These bonds are illiquid (not quoted/traded in the market) 6/

MLB triggers might drain foreign reserves? • MLBs align with SL’s macro performance • Upside scenarios are likely to be triggered (= reflects the strength of economic recovery) • Such higher debt payment scenarios have been structured to be consistent with debt

Lability management exercise for external debt? • Public Debt Management Office (PDMO) is in the process of overseeing public debt (~2026) • Currently, no plans for debt buybacks, swaps, etc. 4/

External Debt Restructuring • Over 98% negotiations completed, o/w 92% inked • Key pending: USD 175 Mn Govt. Guaranteed SriLankan Airlines bond • They completed a first round of discussions on 01 Aug 2025, but no agreement was reached. 3/

Why FX reserves are down? • FX reserves remained almost flat at USD 6.1 Bn levels (Dec 2024 vs. Jun 2025) • This is because: Inflows (@CBSL net purchases + project loan inflows + one IMF tranche), were similar to outflows (external debt repayments). 2/

Latest insights on Debt Restructuring Govt. published an updated set of answers to external creditors. They provide key insights on the developments post domestic and external debt restructuring. Let me summarise all - in few minutes. 🧵Thread. 1/

Update: Tax Revenue from Vehicle Imports (TRVI) • As of Aug 06,2025, TRVI amounted to LKR 321 Bn. • This is 73% of the annual estimate. • Original estimate was 1.3% of GDP. • Govt. expects to exceed this original estimate.

Humbled and honoured to be the moderator of an elite panel of investment specialists. Corporate Capital Market Limited (CAPM) recently organised a webinar on “Debentures as a Wealth Strategy”, with an objective of introducing this attractive asset class to new investors. Three

CBSL USD purchases further slows down In July 2025, @CBSL bought USD 82 Mn, down from 112 Mn in June and significantly below year-to-date average of 194 Mn/month. Rising vehicle imports might be leaving less USDs for CBSL to buy. We've given an undertaking to @IMFNews to

Ext. Debt Values Central Govt. = USD 36.6 Bn SOE FX Debt = USD 3.0 Bn Total Public Debt = USD 106.2 Bn (104% of GDP) 4/

Split of Ext. Debt by Interest • 72% at fixed rates • 25% at floating rates • 3% interest-free 3/

Split of Ext. Debt by Currency • USD 70% • SDR 15% (Special Drawing Rights of @IMFNews) • JPY 6% • CNY 4% 2/

SL Govt. External Debt Profile Interesting insights were shared at the Investor Call held by the Govt. Treasury, on 31st July. Central Govt. Ext. Debt • Average tenor (term) = 10 years • Average cost of debt = 3.2% p.a. 1/

How @CBSL impacts Money Market liquidity? • Money going into CBSL (denoted -) decreases market liquidity • Money coming out of CBSL (denoted +) increases market liquidity What were such in/outflows during 1H 2025? Net currency withdrawals: -106 Bn In English: When Banks