Investor Presentaiton

Sri Lanka's Public Debt has grown rapidly and has reached unsustainable levels Despite the ambitious fiscal consolidation efforts, Sri Lanka's public debt trajectory is set to remain unsustainable in the absence of a comprehensive debt treatment The pre-restructuring scenario¹ results in an unsustainable debt trajectory, both in relation to debt stock and flow indicators In % of GDP², Public Sector Debt Stock (lhs), and CG GFNs (rhs) 160% 140% 128.1% 114.3% 120% 104.0% 100% 80% 60% 34.5% 31.0% 40% 26.1% 20% 50% 45% In the absence of debt treatment... 40% 1 114.7% 1 35% 30% 25% 19.8% 2 20% 2 15% 10% 5% 0% 0% 2020 2021 2022 2023 2024 2025 CG GFNs (rhs) 2027 Public Sector Debt Stock (lhs) 2026 2028 2029 2030 2031 2032 CG 2027-2032 Avg. GFN Sources: Ministry of Finance, Economic Stabilization and National Policies, Central Bank of Sri Lanka, IMF Notes: (1) The above DSA trajectory reflects a "pre-restructuring scenario" (i.e., a DSA scenario assuming the IMF program's adjustment path and foreseen multilateral/project loans financing and in which the remaining financing gap is financed with an illustrative 12% interest rate debt instrument), (2) CG Debt/GDP and CG GFN/GDP indicators are not presented on the same scale Public debt expected to remain excessively high GFNs expected to remain at unviable levels 9

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