Investor Presentaiton

1 The contemplated debt treatment should enable Sri Lanka to reach DSA targets reflected in the IMF framework The country's DSA targets were carefully calibrated to allow the country to restore debt sustainability, a key anchor of the country's recovery Debt stock target: 95% of GDP by 2032 What are the objectives of the targets? To ensure debt reduction and high probability of debt stabilization How are the targets calibrated by the IMF? The debt stock target is calibrated to ensure a high probability of debt stabilization, even under macro- fiscal shocks similar to those observed in the past 10 years 2 GFN target¹: avg. 13% of GDP To keep rollover risk manageable in 2027-32 3 FX debt service target¹: max 4.5% of GDP in 2027-32 To avoid post-program Balance of Payments pressures from FX debt service The GFN target is calibrated to ensure that the financing burden on the domestic banking sector is manageable under macro-fiscal and refinancing shocks (e.g., tightening of financing costs) similar to the ones observed in the past 10 years . FX debt service target is calibrated based on the country's ability to generate and sustain FX earnings (exports, remittances, terms of trade volatility), as well as the country's historical levels of FX borrowing ▸ Targets are set under the IMF's new SRDSF framework, and ensure public debt's return to sustainability territories Sources: IMF Note: (1) While the GFN and FX debt service targets only pertain to 2027-2032 period, the indicators both have to be on a downward trend between 2032 and 2035 11

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