Investor Presentaiton

Local currency creditors' participation in a domestic debt optimization will also help reaching the DSA targets The authorities are exploring options for a domestic debt operation aimed at liquidity relief while preserving financial stability to avoid further eroding Sri Lanka's repayment capacity Overview of Central Government Local Currency Debt: LKR 13,189bn (USD 36.3bn)4 Debt category Amount LKR 4,126bn Overview of T-Bills holders 1.1% 0.3% 17.5% Q Overview of T-Bonds holders 9.0% 44.5% T-Bills (USD 11.4bn) 18.7% 62.4% 42.7% 3.4% 0.1% 0.3% T-Bonds Other Loans5 LKR 8,722bn (USD 24.0bn) LKR 104bn (USD 0.3bn) CBSL advances6 LKR 236bn (USD 0.6bn) CBSL ■Deposit Taking Institutions¹ ■Non-Deposit Taking Institutions² ■ Other³ ■Non-residents' holdings Only T-Bills held by the CBSL will be considered for treatment to create some fiscal space ■Superannuation Funds Other Non-Deposit Taking Financial Institutions² ■Deposit Taking Institutions¹ Other³ ■Non-residents' holdings ■ CBSL A voluntary domestic debt optimization operation without coercion is envisaged Sri Lankan government and its advisors will initiate consultations with major T-Bonds holders to gauge options and constraints ▸ The DDO will help reduce the efforts required from external creditors to restore debt sustainability but taking into account financial stability objectives Notes: (1) Including Licensed Commercial Banks, Licensed Specialized Banks and Registered Finance Companies, (2) Including superannuation funds (if not specified elsewhere), corporations, insurance companies,, government institutions, funds and SOES, local individuals and others (e.g., societies, clubs, associations), (3) Including Treasury securities used for repurchase transaction allocations, (4) As at end 2022, (5) Commercial loans in local currency and banks' overdraft,(6) CBSL advances are reimbursed at a 0% interest rate 13

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