"Government will not be taking direct loans from abroad," Cabraal told bank directors at a forum in Colombo.
"Commercial borrowing from the market will not happen this year.
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A unit within the Central Bank manages and raise debt for the government.
Cabraal said it will be a "useful window to the market" for commercial banks to tap international capital.
Sri Lanka's state-run Bank of Ceylon has raised loans in the international market and re-lent to the government in the past.
Authorities have also allowed bank to borrow up to 50 million US dollars a year without approval from the Central Bank from next year. Other companies could borrow up to 10 million US dollars.
Cabraal said foreign borrowing for fixed terms were more stable than even portfolio flows.
With foreign loans banks could finance larger projects such as infrastructure, he said.